Can I Go to Prison for White-Collar Fraud?

If you’re asking that question, the answer is yes. Fraud is a serious crime on the federal or state level and can lead to a lengthy prison sentence, a high fine or both.

In fact, a Houston man was just sentenced to 21 months in federal prison and ordered to pay $11 million in restitution after being convicted of conspiracy to defraud the federal government.

That sentence stemmed from a plea deal for the crime of conspiracy to defraud the federal government. It’s known as a white-collar crime on the basis of being a non-violent offense involving such things as fraud, theft, bribery, embezzlement or related crimes.

According to the Houston Chronicle and Becker’s Hospital Review, Syed Rizwan Mohiuddin, 57, was sentenced at a hearing on January 18, 2024, by U.S. District Judge Keith Ellison.

Switching to one guilty plea enabled deal

In 2018, Mohiuddin pleaded not guilty to 5 federal fraud charges against him, including conspiracy, wire fraud, bank fraud and monetary transactions in criminally derived property. 

However, as part of the plea deal made in September 2023, 4 of the 5 charges were dropped, and Mohiuddin pleaded guilty only to the conspiracy charge, according to the U.S. Attorney’s Office for the Southern District of Texas.

The plea deal also provided that Mohiuddin, who’d been CEO and once majority owner of United Memorial Medical Center, serve 3 years of supervised release (probation) upon his release from prison.

$8 million loan was based on fraudulent records

He and an unnamed co-defendant reportedly received an $8 million loan in 2010 on the basis of fraudulent records (a lien on 6 acres of property at 5000 Richmond Avenue). The co-defendant’s name was redacted, and many filings in the case remain sealed.

According to the indictment, the co-defendant then reportedly created a bank account for the fund and transferred $6.9 million of it into another account, this time for Imagine Hospitality, a business created and owned by Mohiuddin.

The federal prosecutors’ case was supported by information provided by Fidelity National Financial, a title insurance company that has sought payments from Mohiuddin over multiple allegations of fraud.

Mohiuddin reportedly paid $6.1 million in 2022 to settle a bankruptcy case after Fidelity National Financial compelled him to start bankruptcy proceedings. But Fidelity and other insurance companies claim that Mohiuddin still owes more than $30 million, according to court records.

As prosecutors in 2018 asserted, Mohiuddin “participated in numerous other fraudulent loan transactions” relevant to the charges.

Hospital also ordered to pay

Separately, United Memorial Medical Center has been ordered to pay more than $2 million to settle allegations that Mohiuddin profited from a billing scheme.

The hospital reportedly received millions of dollars when it overcharged the federal government for patient care during the COVID-19 pandemic and also double-billed the government for COVID-19 tests, according to a March 2022 whistleblower’s complaint.

Mohiuddin was accused of profiting from the alleged billing scheme at United Memorial Medical Center, a Northside hospital that had several locations in Houston. The hospital eventually lost its Medicare contract and closed most of its operations after federal and state surveyors found safety deficiencies that placed patients in jeopardy.

What are my rights in a white-collar crime case?

If you or a loved one in Texas faces such a charge or any other charge for a so-called white-collar crime, you may be wondering what constitutional rights you have when fighting criminal charges, ideally with help from a skilled criminal defense lawyer.

Your constitutional rights in criminal defenses include your 4th Amendment right to protect you from illegal searches and seizures by law enforcement authorities who lack probable cause to do so.

They also include your 5th Amendment right to remain silent and not incriminate yourself when questioned, either by law enforcement authorities upon arrest or by prosecutors at trial. You also have a 5th Amendment right against double jeopardy, which means you cannot be tried twice for the same crime.

Still, more rights include your 6th Amendment right to representation by an attorney, right to a speedy trial, right to a public jury trial and right to confront witnesses, and your 8th Amendment right for reasonable bail from jail to be set while you await trial, and your right to be free from receiving cruel and unusual punishment.

Get an experienced Houston-area white-collar defense lawyer

Persons living in Houston, The Woodlands, Conroe, Katy, Sugar Land or elsewhere in the Houston area must get a skilled and experienced Houston-area white-collar criminal defense lawyer to protect their legal rights.

Besides fraud, theft, embezzlement and bribery, white-collar criminal offenses can include:

Such offenses can lead to charges on the federal level or the state level. Our law firm can fight for your legal rights in both arenas. 

Indeed, Houston’s Neal Davis Law Firm has years of experience in white-collar crime defense, whether in a federal court or a state court in Texas. Such experience has involved standing up for defendants who faced charges such as fraud or theft, which has often led to getting a charge dropped or diminished in pre-trial settlement agreements.

If a case does go to trial, our knowledgeable law firm employs defenses and strategies that can protect your legal rights and work toward a favorable verdict on your behalf.

Contact us today at the award-winning Neal Davis Law Firm—a firm that is widely recognized for its skill in handling white-collar criminal defense—to arrange a private consultation for your case.