Four Executives Arrested in Bank Fraud Scheme
July 23, 2010
Total Loss:
$21 Million
Four executives of a privately held Long Island City company were arrested Friday in an alleged scheme to defraud Amalgamated Bank out of $21 million in loans, said federal prosecutors in Brooklyn. According to a criminal complaint, the men allegedly booked fictitious sales, prematurely recognized sales and made older accounts receivable appear to have been incurred more recently in order to obtain $21 million in loans for three subsidiaries of GDC Acquisitions LLC. For example, the defendants allegedly represented to Amalgamated in writing in November 2009 that GDC had $25.2 million in accounts receivable, when the company actually had $9 million.
Source:
The Wall Street Journal; By Chad Bray
Posted in:
Internal Fraud