Lawyer-CPA Indicted in Alleged Scheme to Bilk Real Estate Investors by Resolving Fake IRS Probe
A New Jersey lawyer is facing criminal charges for allegedly participating in a scheme to bilk real estate investors by falsely claiming they were the target of an Internal Revenue Service probe. A co-defendant also allegedly told them they were being investigated by the Monmouth County prosecutor’s office for mortgage fraud.
In fact, there was no such IRS investigation, but attorney Thomas Frey of Metuchen is accused of working with a broker and an unidentified real estate lawyer to convince four of the other lawyer’s clients that there was, the New Jersey Law Journal reports.
The goal of the alleged scheme was to pressure the four clients into paying Frey hefty legal fees to resolve the fake IRS probe and encourage them to sell some investment properties to a limited liability company in which Frey held an interest, the article recounts.
Frey, who is also a certified public accountant, was indicted last week on charges of wire fraud, conspiracy to commit wire fraud, conspiracy to commit extortion and attempted extortion.
He and his lawyer did not return phone messages from the legal publication.
