Four Men Sentenced to up to 150 Months’ Imprisonment for Conspiracy and Multiple Schemes to Defraud

Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on February 1, 2024, United States District Court Judge J. P. Stadtmueller sentenced defendants Divine-Seven El to 150 months’ imprisonment, Minister Zakar Ali to 140 months’ imprisonment, Aziz Hassan Bey to 106 months’ imprisonment, and Letez Osiris Bey to 80 months’ imprisonment. All four defendants were ordered to serve 3 years of supervised release following their imprisonment and to pay restitution in amounts ranging from $1.6 million to over $2.2 million.

In August 2022, a federal grand jury returned an indictment charging the defendants with conspiracy to commit wire fraud, wire fraud, and mail fraud, in violation of 18 U.S.C. §§ 1349, 1343, and 1341. Defendants Aziz Bey and Divine-Seven El were also charged with money laundering, in violation of 18 U.S.C. § 1957. All four defendants went to trial and were convicted of all counts by a jury on October 17, 2023.

The evidence at trial showed that between June 2020 and July 2021, the defendants participated in a conspiracy to attempt to obtain millions in loans from the Small Business Administration (SBA) and private lenders, through the Economic Injury Disaster Loan (EIDL) program and Paycheck Protection Program (PPP). Each of the defendants filed multiple fraudulent EIDL and PPP loan applications, and engaged in a scheme to defraud the SBA into paying EIDL loan proceeds to which they were not entitled. To obtain those funds, the defendants submitted applications for businesses that were non-existent, made false representations regarding the companies’ number of employees, gross revenues, and cost of goods sold, and submitted false supporting documents. The defendants caused an intended loss from the COVID loan conspiracy of more than $9.9 million.

The evidence also established that Aziz Bey, Letez Bey, and Ali participated in a scheme to defraud state workforce agencies by submitting fraudulent applications for unemployment insurance (UI). As part of the scheme, the defendants filed false UI applications in the State of Georgia, where they had not lived or worked. Letez Bey also filed UI applications in the states of Illinois and California in the names of other individuals, and caused those states to mail debit cards containing UI funds to addresses of Aziz Bey and Ali, resulting in a loss of more than $600,000.

Finally, Aziz Bey, Ali, and El participated in a scheme to defraud lenders by submitting false information to the Wisconsin Department of Motor Vehicles to remove liens that lenders held on vehicles, including a Land Rover, a BMW, and a Corvette. As a result, the defendants were able to keep for their own use or sell the vehicles without repaying the outstanding loans, causing a loss of more than $480,000.

With the fraud proceeds they received, the defendants transferred funds to each other and purchased personal items, such as vehicles and jewelry. For example, Aziz Bey was convicted of using fraud proceeds to purchase a Maserati and to write a $43,000 check to El, and El was convicted of using fraud proceeds to purchase a Porsche and to write a $60,000 check to himself.

In announcing the sentences, Judge Stadtmueller focused on the seriousness of the defendants’ multiple fraud schemes, the effect they had on U.S. taxpayers, the defendants’ lack of remorse and lack of respect for the law, and the need for deterrence.

“The sentences imposed by the court recognize the relentless and pervasive nature of the defendants’ fraud schemes,” stated U.S. Attorney Haanstad. “Rather than putting their effort, time, and creativity into earning a lawful living, these individuals dedicated themselves to funding lavish lifestyles by defrauding private businesses and government programs meant to help struggling individuals survive the economic impact of the pandemic. My office is committed to working with our federal, state, local, and tribal law enforcement partners to hold those who are willing to defraud others fully accountable
for their actions.”

“The successful sentencing of these individuals is a testament to the diligence and hard work of our investigative team, and our law enforcement partners,” said Special Agent in Charge Michael E. Hensle of the FBI Milwaukee Field Office. “The severe penalties handed down reflect the seriousness of the crimes committed by these men, whose actions were not merely unlawful but also caused significant financial harm to their victims. The FBI along with our partners remains resolute in our commitment to uphold the law and ensure that those who engage in sophisticated fraud schemes are held accountable for their actions.”

“Today’s sentencings highlight the Office of Inspector General’s commitment to bringing to justice those who defraud the nation’s UI system. Protecting the integrity of the UI program is one of our highest priorities. We will continue to work with our law enforcement partners to safeguard this critical benefit program for those who need it,” said Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.

The Federal Bureau of Investigation investigated this case, with valuable assistance from the U.S. Department of Labor, Office of Inspector General, and the Internal Revenue Service. Assistant United States Attorneys John P. Scully and Benjamin P. Taibleson prosecuted the case.

NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.