Bank Insider Sentenced for Fraudulent Loan | USAO-SDNY

Audrey Strauss, United States Attorney for the Southern District of New York, today announced that HERODE CHANCY, who at the time of the offense was employed as a manager in a Manhattan branch of a national bank (” Bank-1 ”), was today sentenced to 30 months in prison for his role in a commercial loan fraud scheme for loans totaling more than $ 1 million. CHANCY’s sentence was handed down by US District Judge Lewis J. Liman.

US lawyer Audrey Strauss said: “Bank employee Herode Chancy used bogus businesses, fake bank statements and stolen identities to obtain more than $ 1 million in business loans. Today Chancy was rightly sentenced to prison for his crime. Prosecutions like this should serve as a warning to those in positions of trust in financial institutions that engaging in corrupt criminal conduct will result in prosecution and jail time. “

According to the complaint, the indictment and the statements made in court:

From at least March 2019 or around March 2019 until and including at least around March 2020, CHANCY and co-defendant Adedayo Ilori have conspired to fraudulently obtain business loans from a third-party commercial lender with the intention of not repaying the loans. loans – that is to say, with the intention of “canceling” the loans. CHANCY and Ilori jointly submitted eight fraudulent business loan applications for a total of $ 1,025,000 in business loans. The business loan applications submitted by CHANCY and Ilori included forged bank statements and listed the identities of other people as loan applicants, including stolen identities. CHANCY and Ilori also opened bank accounts using the identities of these other people in order to receive loan payments from the third-party commercial lender. CHANCY and Ilori subsequently conspired with co-defendant Michael Albarella, another bank manager at Bank-1, to open a bank account using a stolen identity in order to launder approximately $ 200,000 of the expected proceeds from the loan program. Albarella opened the bank account at Bank-1 using the stolen identity provided by CHANCY and Ilori, and Albarella accepted a bribe of $ 10,000 to open the bank account.

CHANCY and Ilori believed that the underwriter of the third-party commercial lender was part of the scheme and agreed to pay the underwriter a “commission” for the underwriter’s role in the scheme. In reality, however, the underwriter was an undercover law enforcement officer.

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In addition to jail time, CHANCY, 41, of Bellerose, New York, was sentenced to two years on probation and ordered to confiscate $ 10,000 in fraudulent proceeds.

On August 5, 2021, Albarella was sentenced to six months in prison and three years of supervised release by Judge Liman. Ilori is due to be sentenced on October 13, 2021.

Ms Strauss praised the exceptional investigative work of the New York FBI’s Eurasian Organized Crime Task Force and Homeland Security Investigation El Dorado Task Force.

This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. United States Deputy Prosecutors Tara M. La Morte and Cecilia E. Vogel are in charge of the prosecution.

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