Law Offices of Daniel A. Hochheiser Articles Brooklyn Man Pleads Guilty to Bank Fraud

Brooklyn Man Pleads Guilty to Bank Fraud

By Hochheiser & Hochheiser LLP  Mar. 26, 2012 1:29p

39-year-old E.J. from Brooklyn pleaded guilty recently to conspiracy to commit bank fraud. He and three others are charged with running a scam to “fix” people’s credit scores so they were eligible for loans. According to federal investigators and a Manhattan U.S. Attorney, the group managed to charge people hundreds to thousands of dollars to clean up bad credit scores and made over a million dollars in providing this “service”. This was accomplished through two front companies that were supposedly being run out of the same Brooklyn address but which didn’t actually exist. The team created a fraudulent furniture company and a finance company through which they could service clients with poor credit. The furniture company, for instance, would be used to claim that a customer bought furniture through store financing and paid it off promptly—even though there never was any such transaction. This information would be provided to credit bureaus which would then increase the person’s credit score. Were you charged with a fraud crime in NYC? Contact a New York City white collar crime lawyer as soon as possible to make sure you are well-represented.

Steep Penalties for Fraud Conviction

Prosecutors claim that people who obtained credit report clean up services from the defendant and his alleged accomplices were able to get sizeable loans from banks based on the falsified scores. Approximately $9.3 million in loans were handed out by banks to applicants that were in fact unqualified and defaulted. E.J. will face sentencing later this year and may have to serve nearly seven years in prison as punishment in addition to the $9.3 million in restitution he has already agreed to.

New York City Fraud Attorney

A fraud lawyer with us at our New York City law offices of Hochheiser & Hochheiser LLP may be able to help you or someone you care about that has been charged with this crime. In these difficult economic times, local, state and federal investigators are on a mission to track down and charge anyone that shows signs of any sort of fraud or scam. We have obtained reduced charges and acquittals for clients facing charges for a variety of fraud crimes including tax fraud, insurance fraud, defrauding the government, welfare fraud, security interest fraud and other alleged schemes. You have rights. Make sure they are well defended!

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