Loan applicants lying in their papers and shady loan officers pushing through fraudulent applications is not a rare thing. Thankfully, law enforcement is really cracking down and I am honored to be making reports to the FBI so possible mortgage fraud can be investigated. Anyone who would like to assist can e-mail me for records to send in for a possible case developing in the Dallas area.
Man Sentenced for False Statements in a Loan Application |
Man Sentenced for False Statements in a Loan Application
Written by admin on July 16th, 2010
Steven F. Shaw, 49, a New York resident, was sentenced in United States District Court in Albany, New York, to 36 months in prison, to be followed by supervised release for 5 years, and to pay restitution in the total amount of ,653,530, upon his conviction of making false statements in a loan application, tax evasion, and conversion of the funds of a health care benefit program. Senior United States District Judge Thomas J. McAvoy imposed the sentence and directed Shaw to report on August 31, 2010, to the facility designated by the U.S. Bureau of Prisons to begin serving his sentence. The restitution amount was comprised of ,500,000 to Berkshire Bank, 2,530 to the Internal Revenue Service, and ,000 to the Capital District Physicians’ Health Plan for Tougher Industries, Inc.

In 2006, while Shaw was the President and Chief Executive Officer of Tougher Industries, Inc., a heating and air conditioning contractor based in Albany, New York, he caused Tougher Industries to apply for loans in the total amount of approximately million from Berkshire Bank. Because Tougher Industries‘ financial statements were not strong, the bank required Shaw to guarantee the loan personally. To satisfy this requirement, Shaw submitted personal financial statements, tax returns, and a personal biography in support of the loan application. The bank also required that Shaw provide supporting documentation for financial accounts that he had listed on his personal financial statements. The account statements, documents, and information provided by Shaw were false. Shaw inflated his financial statement, falsely represented that it had been prepared and reviewed by a Hartford Financial Services senior vice-president, and falsely claimed to have accounts at Bermuda Commercial Bank Limited, Smith Barney Citigroup, and American Funds.....
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