A 49-year-old Ohio man was indicted on April 8 on charges of bank fraud and conspiracy to commit bank fraud. The allegation is that the man used a straw buyer to get a mortgage loan and a line of credit in 2007.
The man has previous convictions related to financial matters including passing bad checks and attempted forgery. Although he lived in the house and paid the mortgage, the straw buyer was listed as owner.
Authorities allege that the two lied on the paperwork as well and falsified the finances of the straw buyer. The 49-year-old man was the CEO of a company called Athletes & Entertainers Inc. that advised performers and athletes, but on the paperwork, the straw buyer was listed as the CEO. When the house went into foreclosure, the company that made the loan and extended the line of credit lost more than $600,000.
Individuals who are facing charges such as fraud, embezzlement or other so-called white collar crimes may wish to consult an attorney. Doing so early may be important because a white collar crime investigation may sometimes begin with interviews in which the individual might give information that they are not obligated to provide. This information may make an individual look guilty even when they are not.
If an individual is facing charges for a white collar crime, it may be possible to negotiate with prosecutors. A plea bargain is often possible, in which an individual pleads guilty in exchange for lesser penalties. In some cases, individuals may avoid jail terms or hefty fines in this way.
Source: Cleveland.com, “Cleveland man charged with defrauding bank in purchase of $1.2 million house,” Eric Heisig, April 9, 2015