Former Norfolk Resident Pleads Guilty to Bank Fraud

Jady Brooks, 39, of Atlanta, Georgia and formerly of Norfolk, Virginia, pled guilty today in Norfolk federal court to defrauding Navy Federal Credit Union and filing a false federal tax return. He faces a maximum penalty of 30 years in prison on the bank fraud charge, and three years in prison on the tax charge, when he is sentenced on May 7, 2012.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after Brooks’ plea was accepted by United States District Judge Raymond A. Jackson.

According to a statement of facts filed with his plea agreement, Brooks filed loan applications with Navy Federal Credit Union on behalf of individuals he solicited which falsely indicated the purpose of the loan was to purchase a motor vehicle. He filed these applications for a secured car loan because he knew that the applicants were not sufficiently creditworthy to obtain an unsecured personal loan. In several such instances, he created and submitted false tax returns, W-2 forms, pay stubs, and lease agreements in support of these fraudulent loan applications. He instructed the borrowers to endorse the loan proceeds checks and turn them over to him for deposit into several business accounts he controlled. Before negotiating a check, he would write in a description, including a vehicle identification number, of a vehicle that supposedly would be purchased with the proceeds, knowing that no such vehicle had actually been purchased. He also delivered fictitious bills of sale to the credit union.

Posted in: Deposit Account Fraud