Surety Fraud Sentenced to Jail – Enterprise Insurance

Three men were sentenced Thursday to between two and six years in prison for their involvement in a surety fraud in which worthless "gold certificates" were used to guarantee work on construction projects in New York, New Jersey and elsewhere.

A fourth defendant was sentenced last month for his involvement in the system.

According to the original indictment, in 2015 the men defrauded three contractors out of $ 1.2 million in bail fees.

"It was a purpose of the plan and a contrivance for the defendants to unlawfully enrich themselves by receiving payments from construction companies in exchange for the issuance of supposedly valuable guarantees that were in fact backed by worthless 'gold certificates'," the newspaper said Indictment

The four defendants, convicted by a judge in Miami Federal District Court in Miami, all pleaded guilty to conspiracy to commit mail and wire fraud.

Alexander Xavier was sentenced to six years in prison, Timothy Castracane to three years and 10 months, and Henry Hattendorf to two years. Last month, Robert Wann was sentenced to 4 1/2 years in prison for his involvement in the fraud.

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