A Pennsylvania man was indicted on charges related to fraud on Aug. 5. According to the report, the man, who is the son of a U.S. Congressman, was allegedly involved in a scheme to defraud multiple banks and the Internal Revenue Service.
According to the indictment charges, the man obtained loans from banks using false statements between 2005 and 2012. He then allegedly worked with the Small Business Administration in order to repay less than what he had been loaned. Additionally, he was accused of filing false tax statements with the IRS and stealing from the Philadelphia School District.
It was believed that the funds that he was accused of fraudulently obtaining were used for a number of personal expenses, including retail purchases, electronics purchases, legal fees and credit card expenses. The indictment stated that the man obtained a number of loans, including a United Bank loan for $50,000 in 2011. It was believed that the funds from this loan were used to pay credit card expenses and to pay off other personal debts, which included gambling debts owed to casinos. In addition, he was accused of failing to pay federal tax income, owing the IRS approximately $51,141 for 2010.
Those who are accused of fraud may also be facing serious consequences, including a jail sentence, probation and a repayment of the sums that were believed to be stolen, if they are convicted. Depending upon the circumstances of the specific case, an attorney may be able to help their client by providing evidence suggesting that the defendant was not involved in the scheme or legally obtained and used the funds. Otherwise, the attorney may be able to reduce the severity of the consequences by working out a plea bargain.
Source: The Pennsylvania Record , "Son of Philly congressman facing federal fraud charges", Jim Boyle , August 06, 2014