02-18-2012, 06:09 AM
Not often somebody goes to prison for something like this: http://www.oregonlive.com/pacific-northw...ssman.html
Excerpt: "A prominent Roseburg businessman who beat a couple of banks out of about $3 million was sentenced this week to a little more than three years in federal prison for conspiracy to commit bank fraud.
David Gilbert, 65, president of the Greater Oregon Mazda Dealers Association and owner of a car dealership and investment business, acknowledged in a sentencing hearing in Eugene on Wednesday that he kited more than 500 checks, totaling more than $19 million during one eight-day period, according to Assistant U.S. Attorney Scott E. Bradford.
Gilbert's scheme, outlined in a detailed plea agreement, involved what the government called an elaborate plan. His car dealership, identified in court papers as Horizon Honda Mazda, sustained cash-flow problems in 2008 that caused a shortage of funds in the checking accounts of two banks: PremierWest Bank and Northwest Community Credit Union.
"To cover the shortages, (Gilbert) and others created and executed a check-kiting scheme in order to artificially inflate the account balances in the checking accounts at (the banks), court records show.
Gilbert got his bookkeeper to determine the actual bank balances of the checking accounts, including the shortfall for each. Then they met each workday morning.
"After each meeting, defendant told his bookkeeper to artificially inflate the checking account balances at (the banks) by a particular amount in order to create the facade of positive balances," according to court papers.
This went on for several months, and Gilbert admitted that this allowed him to obtain a series of unauthorized, unsecured and interest-free loans, prosecutors reported.
"The kite collapsed in December '08, when the banks discovered it," Bradford said, adding that the checks looked suspicious during a down-turn in the auto sales business.
Then the FBI investigated.
"Business owners need to understand that such conduct is a crime and will not be tolerated," said Amanda Marshall, the U.S. attorney for Oregon. "There are legitimate ways, like bankruptcy, to work through difficult financial times. Taking shortcuts such as check kiting puts individuals and communities at risk, is illegal, and will land you in jail."
Chief U.S. District Judge Ann Aiken ordered Gilbert to report to prison in 60 days."
Excerpt: "A prominent Roseburg businessman who beat a couple of banks out of about $3 million was sentenced this week to a little more than three years in federal prison for conspiracy to commit bank fraud.
David Gilbert, 65, president of the Greater Oregon Mazda Dealers Association and owner of a car dealership and investment business, acknowledged in a sentencing hearing in Eugene on Wednesday that he kited more than 500 checks, totaling more than $19 million during one eight-day period, according to Assistant U.S. Attorney Scott E. Bradford.
Gilbert's scheme, outlined in a detailed plea agreement, involved what the government called an elaborate plan. His car dealership, identified in court papers as Horizon Honda Mazda, sustained cash-flow problems in 2008 that caused a shortage of funds in the checking accounts of two banks: PremierWest Bank and Northwest Community Credit Union.
"To cover the shortages, (Gilbert) and others created and executed a check-kiting scheme in order to artificially inflate the account balances in the checking accounts at (the banks), court records show.
Gilbert got his bookkeeper to determine the actual bank balances of the checking accounts, including the shortfall for each. Then they met each workday morning.
"After each meeting, defendant told his bookkeeper to artificially inflate the checking account balances at (the banks) by a particular amount in order to create the facade of positive balances," according to court papers.
This went on for several months, and Gilbert admitted that this allowed him to obtain a series of unauthorized, unsecured and interest-free loans, prosecutors reported.
"The kite collapsed in December '08, when the banks discovered it," Bradford said, adding that the checks looked suspicious during a down-turn in the auto sales business.
Then the FBI investigated.
"Business owners need to understand that such conduct is a crime and will not be tolerated," said Amanda Marshall, the U.S. attorney for Oregon. "There are legitimate ways, like bankruptcy, to work through difficult financial times. Taking shortcuts such as check kiting puts individuals and communities at risk, is illegal, and will land you in jail."
Chief U.S. District Judge Ann Aiken ordered Gilbert to report to prison in 60 days."
