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Fraud Friday — Stolen Valor and Bank Fraud

By Bob Coleman
Editor, Fraud Friday

Charles Bailey told Newburyport Five Cent Savings Bank he had served in the Marine Corps in Afghanistan and Iraq for nine years, receiving a Silver Star, a Purple Heart and a Combat Action Ribbon.

He lied.

He used counterfeit photoshopped military paperwork to convince the bank he was not responsible for derogatory information on his credit report. He claimed his ex-wife illegally accrued debt in his name while he was overseas.

Shortly after funding three loans in early 2014 totaling $300,000, Newburyport Five Cent Savings Bank made a public announcement that it had financed the loans in support of the local community.

Soon after that announcement the bank received a call from Kennebunk Savings Bank
that Bailey previously had submitted a loan application to Kennebunk Savings Bank that the bank considered fraudulent.

As a result of the phone call the bank started digging further. It discovered the equipment dealer that sold Bailey farm equipment, Atlas Tractor, was actually a shell company of Mr. Bailey’s. The John Deere serial numbers provided were false. Bailey simply pocketed the cash.

The bank also did a google earth images of the farm, only to find it was a vacant lot.

But Bailey wasn’t quite finished. A couple of months later he applied for an SBA, (Patriot Express?) loan from Citizen’s Bank. He submitted a letter that showed he was in good standing with the state. When Citizen’s Bank attempted to verify the letter of good standing with the secretary of state’s office, the secretary of state responded that C. Bailey Farms was overdue on its filing requirements and therefore it was not in good standing. According to the secretary of state’s office, the letter of good standing that Bailey presented with his loan application was counterfeit.

The bank also discovered he submitted a counterfeit letter from Equifax saying the derogatory information on his credit report was not his responsibility.

Citizens Bank denied the SBA loan request.

Bailey has been doing the military lies and photoshopped fake letter routine for years.

In April 2013, after his Farm Credit East loan had become seriously delinquent, Bailey falsely informed Farm Credit that he would be entering active duty status with the U.S. Marine Corps. Bailey claimed that, due to the hardship arising from his alleged call to active duty and significant medical problems allegedly afflicting both his wife and son, he had been approved for emergency financial assistance through the military’s Family Emergency Services, Camp Pendleton. Bailey provided Farm Credit East a counterfeit letter on United States Marine Corps letterhead, stating that that “Gunnery Sergeant Christopher Bailey, Ist Marine Special Operations Battalion (Forward), 1st Group, Senior Forward Combat Operator,” was ordered to report to Marine Special Operations Training Battalion, Camp Pendleton for “pre-deployment condition and proficiency training on October 7, 2013, at 0500 hours local time.”

Charles pled guilty to bank fraud and stolen valor charges Wednesday.

He faces 30 years in jail and millions of dollars in fines.

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Feedback welcomed at bob@colemanreport.com

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