Man Pleads Guilty to Lying in Loan Application

Allison Tussey —  June 10, 2013 — Leave a comment

Anthony J. Vargas, 42, Modesto, California, pleaded guilty to knowingly falsifying material facts in a loan application.

According to court documents, in March 2009, doing business as “Bootstrap Cabinets,”  Vargas applied for a $50,000 small business loan under the American Recovery and Reinvestment Act of 2009. Vargas signed the SBA forms, certifying that the information contained in his application was true and complete, which caused the funding bank to approve his loan. In his loan application, however, Vargas knowingly misrepresented his criminal history and, despite having earlier filed for bankruptcy, falsely represented that he had never been involved in bankruptcy proceedings. Approximately three months after being approved for and receiving the SBA loan, Vargas defaulted and filed for bankruptcy.

Vargas is scheduled to be sentenced on August 22, 2013, before U.S. District Judge Lawrence J. O’Neill. The maximum statutory penalty he faces is five years in prison, a $250,000 fine, or both. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

United States Attorney Benjamin B. Wagner announced the guilty plea.

This case was the product of an investigation by the SBA – Office of Inspector General. Assistant U.S. Attorney Christopher Baker is prosecuting the case.

Allison Tussey

Posts Google+

No Comments

Be the first to start the conversation.

Leave a Reply

Text formatting is available via select HTML.

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>