“Serial fraudster” sentenced to two years in prison for mail fraud conspiracy

 

Date: February 5, 2021

Contact: newsroom@ci.irs.gov

Grand Rapids, Michigan — Wavy Curtis Shain of La Grange, Kentucky was sentenced to 24 months in federal prison for conspiring to commit mail fraud. Shain pleaded guilty to the charge in September 2020. U.S. District Judge Janet T. Neff also ordered Shain to pay $23,373.92 in restitution and imposed a $40,000.00 fine.

In 2017, Shain was on supervised release for a prior federal mortgage fraud conviction when he conspired with an individual in the Western District of Michigan ("Person A") to fraudulently obtain loans for an Okemos-based health care provider, Advanced Medical Services, P.L.L.C. (d/b/a Advanced Sleep Diagnostics of Michigan). Shain received fraudulent loan documents, completed and signed in the name of another individual ("Person B"), from Person A. Shain falsely authenticated those forged signatures by placing fake notary stamps and fake notary signatures on certain loan documents, including documents representing that Person B would personally guarantee the loans. Shain then mailed the fraudulent loan documents to out-of-state lenders. Person B was not aware that his identity was being used to procure these business loans.

In May 2018, during the investigation of Person A, Shain lied to the FBI and claimed he had no role in the loan applications. At the time, however, Shain was using Person B's identity in another loan fraud scheme. At sentencing, Judge Neff described Shain as a "serial fraudster" and described crimes involving identity theft as "horrendous offenses against an individual."

The investigation was conducted by the IRS Criminal Investigation, U.S. Attorney's Office for the Western District of Michigan, the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of Inspector General, Blue Cross Blue Shield of Michigan, and the Federal Deposit Insurance Corporation, Office of Inspector General in Louisville, Kentucky. Assistant U.S. Attorney Adam B. Townshend represented the United States.