Fifth Employee in Collusion with Cash Flow Partner Banks Admits Role in Multimillion-Dollar Loan Scheme | USAO-NJ

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NEWARK, NJ. Today, the New Yorker admitted his involvement in the scheme, which involved the creation of false documents to secure more than $ 4 million in bank loans, Acting US Attorney Rachel A. Honig said.

Cesar Mendes, 49, of New York, pleaded guilty to a videoconference in front of US District Judge Kevin McNulty in a report that accused him of conspiracy to commit banking fraud.

According to documents filed in this case and statements made in court:

Between March 2016 and September 2019, Cash Flow Partners LLC, a consulting firm with offices in New York and New Jersey, released online advertisements and held seminars offering assistance to clients in obtaining bank loans, including loans insured by the Federal Corporation. FDIC deposit insurance). When clients submitted documentation to Cash Flow Partners supporting their bank loan applications, Mendes and others created fake documentation to make client applications appear more financially viable than they actually were. The victim banks suffered losses in excess of $ 4 million.

Mendes’ four conspirators, Edward Espinal, Gladys Collins, Jenny Frias and Raimundo Torres, have previously pleaded guilty to charges related to their role in the Cash Flow bank fraud and are awaiting sentencing.

Conspiracy to commit a bank fraud charge carries the maximum possible sentence of 30 years in prison and a $ 1 million fine. The verdict will be announced on November 1, 2021.

Individuals who believe they may have information on this case can contact the FBI at 1-800-CALL-FBI (225-5324).

Acting US Attorney Honig has credited the FDIC-Office Special Agent with the Inspector General (FDIC-OIG) led by Special Agent Patricia Taraska in New York and FBI Special Agents led by Special Agent in New York. Charge George M. Crouch, Jr. in Newark with an investigation that led to a plea today.

The government is represented by Assistant US Attorney Ari B. Fontecchio of the US Attorney’s Office of Special Prosecution and J. Stephen Ferketik of the Newark Health Fraud Division.

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