A former Arizona custom-home builder and his accountant have been found guilty of bank fraud and conspiracy and now face lengthy prison sentences, according to recent reports.
The defendants, Paxton Anderson, former owner of Dynamite Custom Homes, and Joseph Plany, certified public accountant, recruited friends and family members to act as home buyers between 2004 and 2009 to apply and qualify for construction loans. These construction loans would be paid out in large chunks. However, Anderson and Plany would request the payments using forged borrowers’ signatures and phony invoices. They would then use the money to pay the borrowers’ “monthly mortgage payments.” The banks were, essentially, paying themselves and helping the pair spend almost $900,000 on horses and gambling.
The pair were tried and found guilty of bank fraud and conspiracy tied to this four-and-a-half year mortgage scam. The federal court convicted the pair on 22 of the 25 counts. As a result of the verdict, Anderson faces between about 14 to 17 years in prison, while Plany faces between 11 and 14 years behind bars.
Kevin Rapp, assistant US attorney, explained in his closing statement to the jury that “the scheme itself is impressive in its simplicity…Take money from the bank, report to use that money to build the homes, not use that money to build the homes, give that money back to the bank to make mortgage payments and then use a portion of that money to buy race horses and things related to race horses.”
Rapp was able to convince the jury that the defendants had defrauded numerous banks including M&I Bank, Tier One Bank and Regions Bank out of millions of dollars tied to loans that were supposed to build more than 40 luxury homes in Arizona.
Bank fraud refers to the actions involved in illegally receiving money or property held by a banking institution. When documents are forged or knowingly submitted with inaccuracies, it is considered fraud. The severity of the case depends on the type of fraud committed and the extent of it. In Anderson and Plany’s case, the fraud extended to 22 counts and involved large sums of money.
When facing the charge of bank fraud, it is imperative you seek legal advice from an experienced fraud defense attorney. Alex Lane, a criminal defense attorney in Phoenix, Arizona can help you protect and exercise your rights to a good defense. The implications of fraud on your professional career can be devastating. Protect your reputation and rights today by seeking the help of an experienced defense attorney like Alex Lane.