Man Pleads Guilty to Running Investment Loan Scheme

Allison Tussey —  June 24, 2014 — Leave a comment

Rodney Walker, 44, Atlanta, Georgia, pleaded guilty before U.S. District Court Judge Richard J. Arcara, to wire fraud for his role in a scam whereby the defendant promised a standby letter of credit, which he could monetize into $100 million in loans.

According to his plea agreement, the defendant created an investment loan scheme which resulted in $175,000 dollars in financial losses to an investment company located in the Western District of New York.

Walker represented to the victim investment company that he and a co-conspirator could obtain a standby letter of credit from banks outside the United States. The defendant assured representatives of the investment company that he could monetize the stand by letter of credit, which would provide the investment company with $100 million dollars in loans.

As part of the scheme, Walker required the investment company to provide him with $175,000, which would purportedly cover the costs associated with the financial transaction.

The investment company provided the funds but instead of using the money to obtain financing, the defendant, and his co-conspirator, used the funds for their own purposes.

The plea was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.

Sentencing is scheduled for August 19, 2014 at 12:00 p.m. before Judge Arcara.

U.S. Attorney William J. Hochul, Jr. announced the guilty plea.

Assistant U.S. Attorney Russell T. Ippolito, Jr. handled the case.

The charge carries a maximum penalty of 20 years in prison, and a fine of $250,000.

Allison Tussey

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