NORFOLK, Va. (AP/WAVY) - A Chesapeake man has been indicted on federal charges he cheated Virginia and the federal government out of more than $11 million in a scheme involving historic tax credits on properties in Norfolk.
The government said Thursday that 48-year-old George P. Hranowskyj was indicted on 14 counts , including wire fraud, unlawful monetary transactions and conspiracy.
According to Neil H. MacBride, United States Attorney for the Eastern District of Virginia, from January 2006 until March 2012, Hranowskyj and his business partner bought properties in historic areas with the purpose of having them qualify for historic tax credits.
MacBride said the two financed the renovations by borrowing money f rom financial institutions.
According to the U.S. attorney's office, Hranowskyj enriched himself and others by approximately $8 million through the tax credit fraud scheme. The alleged scheme involved inflating the amounts spent on renovating properties, thereby increasing the federal and state tax credits.
The government says Hranowskyj and with an unidentified partner used the money for their own personal purposes. The investigation is continuing.
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