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U.S.: Va. man accused in $11 million scheme

Thursday - 4/19/2012, 4:48pm  ET

NORFOLK, Va. - 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 47-year-old George P. Hranowskyj was indicted on 14 counts, including wire fraud, unlawful monetary transactions and conspiracy.

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.

Prosecutors say the Virginia Department of Historic Resources cooperated closely with them.

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