Wednesday, August 27, 2008
Missouri Man Sentenced on Federal Bank Fraud Charges
John “Jack” Gorecki, St. Charles, Missouri, was sentenced to twenty-seven months in prison on bank fraud charges involving false loan applications submitted to financial institutions in the St. Louis area, United States Attorney Catherine L. Hanaway and St. Charles County Prosecuting Attorney Jack Banas announced.
Gorecki owned several residential rental properties and Captain Jack’s Marina in St. Charles County, MIssouri. To fund his business endeavors, Gorecki often obtained loans from 1st Advantage Bank, Truman Bank and Southwest Bank (formerly Missouri State Bank). In February 2006, Gorecki was experiencing financial difficulties. Between February and November 2006, Gorecki submitted false information on loan applications at all three banks. The false information included false lease agreements, false tax records and false information about his financial situation. As a result, 1st Advantage Bank, Truman Bank and Southwest Bank made substantial loans to Gorecki, who defaulted on several of them, resulting in more than $600,000 in losses to those three banks.
Gorecki pled guilty in April to one felony count of bank fraud and appeared for sentencing before United States District Judge Charles A. Shaw. In addition to his prison term, Gorecki was also ordered to repay more than $603,000 in restitution to the banks he defrauded.
In addition to the St. Charles County Prosecuting Attorney, Hanaway commended the work performed on the case by the Federal Bureau of Investigation and Assistant United States Attorney John Bodenhausen, who handled the case for the U.S. Attorney’s Office.
mortgage fraud
There is a case similar in Bakersfield, CA that the Kern County District Attorney will not prosecute that involves 6 properties and losses to lenders exceeding $1.2M.
Posted by on 09/03 at 07:30 AM
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
F. Jeffrey Miller Update - October 20, 2009
A hearing was held in Topeka, Kansas in front of Judge Julie Robinson. Miller is currently being held pending his sentencing which is set for December 22nd, 2009 at 9:00 a.m.. Steve Vanatta and Hallie Irvin, Miller's codefendants, will be sentenced at that time also.
Several motions were heard this week. One was a motion for Miller to be released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied.
Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.
The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.
Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.
The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.
Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.
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