Overland Park man charged with fraud pleads guilty
In these tough economic times it seems that everyone is feeling the pressures of financial hardship. Most people deal with their money woes by trying to live more frugally. But some go to more extreme lengths and commit white collar crimes against businesses and individuals for financial gain.
An Overland Park man facing several charges of fraud recently pleaded guilty to bank fraud, identity theft, money laundering and wire fraud. Apparently the man had coordinated a scheme in which he provided false information in order to gain lines of credit from banks in the Kansas City area.
With a stolen identity he was able to qualify for a $1.3 million credit line from one bank, $750,000 in personal loans from another and a $1 million line of credit for his consulting company from a third. Additionally, he took money from investors to fund a fraudulent business venture.
The type of allegations to which this man pleaded guilty involved defrauding banks, which are considered federal institutions because they are backed by the Federal Reserve. As a result, his charges were under the jurisdiction of U.S. authorities.
A federal criminal charge is serious and can carry with it a lengthy prison sentence and significant fines. In such a situation, it is always advisable for a defendant to secure an experienced attorney to plan a solid defense. Federal cases tend to be prosecuted aggressively, but under the U.S. Constitution, no one has to face interrogation without legal counsel.
In this case, the man was able to strike a plea bargain with prosecutors. Because he agreed to plead guilty to the charges he did not have to face the rigors of a federal criminal trial. The parties agreed the man would serve 120 months in federal prison and pay over $5.7 million in restitution. These penalties seem steep, but they are likely milder than those the man would have faced had he been found guilty at trial.