• 26
  • April
    2012
When a man sought a short term business loan from a bank in Georgia, he offered collateral in the form of an out of state bank account which he claimed contained $21 million. He produced bank statements and other documentation as evidence of this account. The Georgia bank provided a multimillion dollar loan which it believed would be used to fund the man's online payment business. But it turns out that neither the business, nor the $21 million bank account ever existed. The man has now pled guilty to federal bank fraud charges.
This case has garnered increased attention because the suspect had appeared on the television show, "The Millionaire matchmaker." The premise of the show was to set up single millionaires with potential spouses. During the show, this suspect portrayed himself as a millionaire who owned a private jet and a mansion. He also told the television audience the same story that he had told the bank regarding the existence of his online payment business.
While this instance of alleged bank fraud seem to reflect a relatively audacious set of circumstances in most instances the allegations revolve around a much more subtle type of activities. Inaccurate business assessments or projections have the potential to raise red flags among federal investigators, despite an absence of intent to defraud on the part of the suspect.
The court has not announced the sentence in this matter. But generally as the amount of money involved in the alleged fraud increases, potential penalties become increasingly severe.
Source: ABC News, "Millionaire Matchmaker' Con Man Pleads Guilty to Bank Fraud," Linsey Davis, April 11, 2012