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Feds charge bank founder with fraud for allegedly illegal loans

Two men in New Jersey have entered not guilty pleas after federal investigators accused them of manipulating loans through the bank that one of them founded to avoid lending limits. The indictment against them alleged that they lied on loan applications and hid their connections to handpicked borrowers. From 2008 to 2013, the loans totaled about $9 million.

After his court appearance, the bank founder provided a public statement dismissing the notion that he would defraud his own bank. His lawyer added that evidence shows that all loans in question had proper collateral and were completely repaid. The lawyer for the bank founder's associate also expressed confidence that a jury would exonerate the man of all charges.

The bank founder has been the target of other accusations from a developer who sued him over allegations that local government officials in Edgewater favored the bank founder. He alleged that they colluded to prevent his proposed residential development. In recent years, Edgewater has experienced a revival as luxury high-rises and office towers were built. The bank founder denies accusations that he has a corrupt relationship with local officials.

A person responsible for large amounts of money or major business transactions might be the subject of scrutiny from federal investigators. The representation of a Hackensack, New Jersey, federal charges defense lawyer may recommend how to respond to criminal allegations. To build a defense against accusations of financial crimes, a lawyer might organize financial records and strive to illustrate the person's compliance with the law. This effort may improve the person's position when negotiating a plea deal or disputing charges in front of a jury.

Source: NJ, "NJ developer accused of operating loan scheme at bank he founded denies fraud charges", Nov. 13, 2018

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