6 charged in complex decade-long scheme to solicit business from Michigan crash victims

Michael Angelo operated network of entities to provide services to crash victims, officials say

Wreckage from a car crash. (Pexels)

A group of people and businesses in West Bloomfield, Dearborn, Detroit, Clinton Township and several others cities across Metro Detroit have been linked to a complex fraud scheme aimed at soliciting millions of dollars’ worth of business from Michigan crash victims over the past decade.

6 people charged, many others involved

Michael Angelo is accused of operating a network of entities from 2011-2022 that provided medical, legal and transportation services to crash victims.

Angelo lived in Clinton Township and Birmingham, Michigan, as well as Springfield, New Jersey, throughout the course of the scheme, officials said.

The criminal complaint names five people as Angelo’s “co-conspirators.”

  • Thomas Reed Quartz -- A resident of Detroit, Wyandotte, Lincoln Park and Grosse Ile, and a licensed attorney in Michigan.
  • Rosina Angelo -- A resident of Mountainside, New Jersey, and the sister of Michael Angelo.
  • Hassan Kamal Fayad -- A resident of Dearborn and Detroit, and the brother of Mirna Fayad.
  • Mirna Kamal Fayad -- A resident of Dearborn, and the sister of Hassan Fayad.
  • Cory Justin Mann -- A resident of West Bloomfield.

Officials said the co-conspirators operated many of the entities within the network to disguise Michael Angelo’s control over the operation as a whole.

The criminal complaint also references a series of unnamed people involved in the scheme.

  • “Individual A”: Operated a personal injury law firm in Southfield from 2011-2022.
  • “Individual B” and “Individual C”: Chiropractors who owned and operated several businesses, including medical billing companies and magnetic resonance imaging facilities, with Mann from 2009-2015.
  • “Individual D”: A chiropractor who operated a physical therapy clinic in Flint.
  • “Individual F”: A chiropractor who operated a business providing MRI services to patients in Dearborn.
  • “Individual G”: A physician operating a business providing ambulatory surgical services to patients in Clinton Township.
  • “Individual H”: Worked alongside Michael Angelo to operate a Clinton Township business that provided ambulatory surgical services to patients.
  • “Individual L”: Controlled bank accounts for a Southfield limited liability company called Spine and Health, along with Hassan and Mirna Fayad.

Two Florida residents worked as phone solicitors for several businesses involved in the scheme from 2011-2018, the criminal complaint says. They’re named, but not charged in the indictment.

Other companies linked to operation

Officials said Michael Angelo also controlled Meds Direct, a limited liability company in Clinton Township.

Hassan Fayad, Mirna Fayad and Mann held ownership interests in Gravity Imaging, a Berkley company that provided MRI services to patients, according to authorities.

Hassan and Mirna Fayad operated 4 Transport, a transportation services company in Dearborn, the criminal complaint says.

Michael Angelo, Hassan Fayad and Mirna Fayad operated 411 Help, a Southfield company that provided physical therapy and rehab services to patients, officials said.

Mann, Hassan Fayad and Individual C held financial control over Total Toxicology, a Southfield company that provided lab services and tested fluid samples for patients, according to court records.

Scheme overview

Authorities said multiple solicitors from a consulting entity who were not charged in the criminal complaint would illegally obtain Michigan traffic crash reports.

Officials said the Florida residents would call Michiganders a few days after they were involved in crashes and offer them medical, legal and transportation services from specific personal injury lawyers, chiropractors and MRI facilities.

Crash victims who were open to receiving help were directed to specific facilities within the network of entities operated by Michael Angelo and his co-conspirators in a way that maximized fees and insurance proceeds, court records show.

The Florida residents would typically tell Michigan crash victims to send payment for the services in cash via a commercial courier service to a consulting company at a private mailbox in Boca Raton, Florida, according to officials.

This scheme would generate millions of dollars, authorities said.

By using a number of nominated owners to run certain entities and concealing income with multiple bank accounts, Michael Angelo hid the scheme from the IRS, according to the criminal complaint.

He instructed others to direct crash victims to certain entities in a way that disguised the funds as business expenses, officials said. Then, he could use the funds to pay his own personal expenses without reporting them as income and paying taxes, they said.

Wire fraud charges

Michael Angelo, Hassan Fayad and Mann defrauded third-party finance companies from 2017-2020 by bundling accounts receivable purportedly owed to entities within their network and sold those bundles to the finance companies, even when the accounts receivable had already been paid and settled, court records show.

Much of that income was hidden from the IRS, according to authorities.

Officials said the trio entered into a purchase agreement with two buyers. Michael Angelo, Hassan Fayad and Mann agreed to direct businesses under their control to gather unpaid and collectable invoices generated by their entities for medical services they provided to specific patients on specific dates into bundles of receivables labelled as number portfolio purchase orders, according to the criminal complaint.

Each portfolio had a face value made up of the total of the receivables it contained, officials said. The two buyers were assigned the future right, title and interest to receive the funds owed by third parties in return for the buyers paying the entities a percentage of the face value of each portfolio, authorities said.

Michael Angelo, Hassan Fayad and Mann agreed each portfolio had been generated in accordance with the terms of a purchase agreement and signed under the penalty of perjury that they were true and accurate, the criminal complaint says.

Here are some of the specific purchase agreement actions, according to court documents:

  • Michael Angelo directed a purchase agreement between Greater Lakes and a buyer on Aug. 15, 2017.
  • Michael Angelo directed a purchase agreement between Meds Direct and a buyer on Aug. 29, 2017.
  • Michael Angelo executed the purchase agreement between Meds Direct and a buyer on Nov. 7, 2017.
  • Mann executed a purchase agreement between Gravity Imaging and a buyer on Dec. 18, 2017.
  • Hassan Fayad executed a purchase agreement between 411 Help and a buyer on Jan. 22, 2018, in his capacity as CEO of 411 Help.
  • Michael Angelo executed an amendment to the purchase agreement between Greater Lakes and a buyer on Jan. 24, 2018.
  • Hassan Fayad executed a purchase agreement between Spine and Health and a buyer on Feb. 23, 2018, in his capacity as CEO of Spine and Health.
  • Mann executed a purchase agreement between Total Toxicology and a buyer on Feb. 26, 2018.

The criminal complaint alleges Michael Angelo, Hassan Fayad and Mann were involved in delivering portfolios to buyers while knowing payment had been received for some or all of the amounts of the receivables.

“The defendants ... did knowingly and intentionally devise a scheme and artifice to defraud buyer A and buyer B, and to obtain money and property from buyer A and buyer B by means of materially false and fraudulent pretenses, representations and promises,” the criminal complaint reads.

A chart included in the complaint shows 21 specific instances between Sept. 13, 2017, and Jan. 23, 2019, that account for the wire fraud charges.

Aggravated identity theft charge

Hassan Fayad is facing a charge of aggravated identity theft after a buyer filed a civil claim against him, Mann and Gravity Imaging on Dec. 30, 2019, according to authorities.

The civil claim was filed in the 53rd Judicial District Court of Travis County, Texas. It alleges fraud, fraud by nondisclosure and conversion arising out of Gravity Imaging purchase agreements.

A court document claims Hassan Fayad lived at a fake address in Dearborn where another person who shares his same first and last names actually lived.

Hassan Fayad and the buyer reached a settlement agreement on April 27, 2020, that says he will pay the buyer about $7,137,275 that was obtained from future accounts receivable, court records show.

Hassan Fayad executed a forbearance agreement related to about $6,373,862 still owed to the buyer using the name “Hassan Fayad” and stating that he lived at a false address in Dearborn where the person with his same first and last names actually lived, according to officials.

The aggravated identity theft charge stems from Hassan Fayad using that means of identification from another person, the criminal complaint says.

Conspiracy to defraud US

Michael Angelo, Rosina Angelo and Quartz are facing accusations that they conspired to defraud the U.S.

They are accused of conspiring together to impede the income taxes they owed as the ones in charge of companies from 2012-2021.

The entities were operated at the direction and for the financial benefit of Michael Angelo, according to authorities. They would accept funds from Michael Angelo in exchange for an agreement to disburse funds from entity bank accounts at his direction.

The disbursements included money to pay Michael Angelo’s personal expenses, pay the wages and expenses for entities he controlled, and pay patients to obtain their business and steer them away from competitors, officials said.

Michael and Rosina Angelo opened Bank of America bank accounts in the name of Pacific Marketing on Oct. 24, 2012, according to authorities.

From June 2013 to March 2015, Michael Angelo and others caused at least $17,000 to be disbursed from another entity’s bank accounts to pay fees he earned with checks payable to Pacific Marketing, court records show.

From August 2013 to October 2015, Individual F allowed Michael Angelo to use a bank debit card drawing on another entity’s count to pay at least $38,000 in personal expenses, officials said.

In 2014, Michael and Rosina Angelo deposited more than $822,000 in funds to Pacific Marketing accounts, authorities said.

From February 2014 into 2015, Michael Angelo and others caused $11,500 to be disbursed from the bank account of another entity to pay fees he earned with checks payable to Pacific Marketing, according to the criminal complaint.

From May 2015 to April 2016, Michael Angelo and others caused at least $170,000 to be disbursed to pay fees he earned with checks payable to Pacific Marketing, officials said.

On Jan. 20, 2015, Michael Angelo opened a PNC Bank account in the name of Pacific Marketing, according to court records.

Michael and Rosina Angelo deposited over $1 million in funds to the PNC Bank account for Pacific Marketing in 2015, the criminal complaint says. They caused another person to pay advertising fees owed to Michael Angelo through checks payable to Pacific Marketing, officials said.

In 2016, Michael and Rosina Angelo deposited about $2 million in funds to the PNC Bank account for Pacific Marketing, according to authorities.

Michael Angelo, Quartz and others caused at least $24,000 to be disbursed from Michigan Accident Associates’ bank accounts to pay fees earned with checks payable to Pacific Marketing, court records show.

From May 2016 to December 2016, the two men caused at least $16,000 to be disbursed from Michigan Accident Associates’ bank accounts to pay purported rental payments with checks payable to Alleycat, which is owned and controlled by Michael Angelo, the criminal complaint states.

Michael Angelo and Quartz directed cash withdrawals from a Michigan Accident Associates’ bank account and caused the cash to be disbursed as incentives to patients to patronize entities involved in the scheme, officials said.

Rosina Angelo and others prepared and filed a fraudulent 1040 form with the IRS on Jan. 27, 2016, according to court records.

From May 2016 to June 2020, Michael Angelo directed multiple $2,000 payments from bank accounts controlled by Hassan Fayad for rental payments with checks payable to Virgilio Leasing, which was controlled by Michael Angelo, authorities said.

On June 23, 2016, Rosina Angelo and others provided fake financial records to Individual E and caused that person to prepare a fraudulent 1040 form for her, the criminal complaint states. She then filed that form with the IRS, officials said.

Authorities said Michael Angelo and others directed at least $500,000 from the PNC Bank account for Pacific Marketing to a Black River Wealth Management account on Oct. 14, 2016, in the name of JV Holdings.

On May 10, 2017, Michael and Rosina Angelo provided fake financial records that resulted in a fraudulent 1040 form being filed with the IRS, according to court records.

Quartz provided false financial records to his return preparer to prevent any 1099 or W-2 forms from being filed with the IRS that reported taxable income earned by Michael Angelo in 2016, according to officials.

Hassan and Mirna Fayad executed a signature card for a New Horizon Fifth Third Bank account on June 12, 2019, the criminal complaint says.

From 2020-2021, Michael Angelo directed Hassan and Mirna Fayad to disburse about $27,000 from the New Horizon bank accounts to Virgilio Leasing, court records show.

In a separate charge of conspiracy to defraud the U.S., Michael Angelo, Hassan Fayad and Mirna Fayad are accused of providing fraudulent financial records, causing false documents to be filed with the IRS and making incorrect claims about who owned and operated businesses.

Taxable income totals of $50,000 were not reported in 2017 and 2018, according to the complaint.

On May 19, 2020, Hassan and Mirna Fayad prepared and filed a false form for 4 Transport that failed to report about $229,600 of distributions, officials said.

They prepared and filed another false form for 411 Help that failed to report about $259,900 of distributions, court records say.

Mann is accused of causing about $104,000 to be paid from a Total Toxicology bank account to Rosina Angelo as purported “commission” fee payments in 2016. He did the same in the amount of $115,300 in 2017, according to authorities.

Various other payments executed or directed by Michael Angelo, Mann, Hassan Fayad and Mirna Fayad were outlined in the criminal complaint as “overt acts” performed to defraud the U.S.

Tax evasion charges

Officials said Michael Angelo held an ownership interest in Pacific Marketing, which didn’t elect to be treated as a corporation. He was required to report income and expenses earned by the company, but did not during the tax years 2014 and 2015, according to court records.

“Michael Angelo did willfully attempt to evade and defeat income tax due and owing by him and his spouse to the United States of America,” the complaint reads.

All charges

Michael Angelo is charged with 21 counts of wire fraud, three counts of conspiracy to defraud the U.S. and two counts of tax evasion -- evasion of payment.

Hassan Fayad is charged with 21 counts of wire fraud, two counts of aggravated identity theft and one count of conspiracy to defraud the U.S.

Mirna Fayad is charged with two counts of conspiracy to defraud the U.S.

Mann is charged with 21 counts of wire fraud and one count of conspiracy to defraud the U.S.

Quartz and Rosina Angelo are charged with one count of conspiracy to defraud the U.S.


About the Author:

Derick is the Lead Digital Editor for ClickOnDetroit and has been with Local 4 News since April 2013. Derick specializes in breaking news, crime and local sports.