Opinion ID: 2791321
Heading Depth: 2
Heading Rank: 4

Heading: Falsification of Records (Count 8)

Text: Nazzal also engaged in several activities to avoid discovery. Eric Morton testified that when Nazzal feared their scheme would be uncovered, Nazzal told him they had “to keep [their] stories straight . . . that [Morton] was not bribed, [and that] the loans were above board . . . things along that line.” Nazzal similarly directed both Morton and Farouk Harajli to create affidavits 2 Due to the death of the title company’s closing agent, there had been a delay in recording a number of documents, including the $3 million Standard Federal mortgage on Harajli’s gas station. 3 Under Michigan’s “race-notice” recording statute, a party who records first gets priority of title only if they also lacked notice of any prior unrecorded claims on the same property. See Mich. Comp. Laws § 565.29. -6- Case Nos. 13-2612 / 13-2628 United States v. Nazzal / Schneider and other documents falsely exonerating Nazzal from any wrongdoing. FBI agents recovered these papers along with many of the false tax returns used in the bank fraud schemes in a safe at Nazzal’s house during the execution of a search warrant. Co-defendant Carey later testified that after the execution of this warrant, Nazzal told him to lie in order “to keep [their] stories straight.” Schneider also played a role in the cover-up. At least three of Morton’s false written statements were notarized by employees at Schneider’s law office. Despite Schneider’s $1,000 payment to Morton in connection with the 12803 Hamilton transaction, these documents falsely stated that Morton had never been bribed by Nazzal or any other person. Additionally, Schneider later told an FBI agent that he had never been an officer or partner of any of Nazzal’s companies—even though he had signed two fraudulent payoff letters as “Treasurer.”