Scott Menaged investigation: "Property Wars" star part of criminal case

Posted at 4:25 AM, May 26, 2017

A well-known reality show star is now part of a criminal investigation.

An indictment just unsealed revealed, Scott Menaged, who was once on "Property Wars," is now part of a joint investigation between the Department of Homeland Security and the IRS.

Federal Investigators say Menaged and three others (Veronica Castro, Alberto Pena and Troy Flippo) worked together to commit bank fraud.

It happened at Menaged’s furniture stores.

According to court paperwork, they would set up lines of credit with banks then create fake accounts, in some cases, they even used the identities of dead people – to cash in.

ABC15 watched as federal agents raided Furniture Pluss in Glendale. However, investigators say Menaged’s other store, Furniture King, is also part of this investigation.

“HSI and IRS were executing federal arrest and search warrants. Since this is an open and active investigation, nothing else is available at this time,” said Yasemeen Pitts O'Keefe, a spokeswoman for the Department of Homeland Security