August 28, 2015
By Bob Coleman
Editor, Fraud Friday
Convicted of bank fraud and claiming fake military medals, Charles Bailey previously told Newburyport Five Cent Savings Bank he had served with the Marine Corps in Afghanistan and Iraq for nine years, receiving a Silver Star, a Purple Heart and a Combat Action Ribbon.
He lied while scamming 10 banks out of more than $1.6 million.
He used counterfeit photoshopped military paperwork to convince banks he was not responsible for derogatory information on his credit report. He claimed his ex-wife illegally accrued loans 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 a veteran in support of the local community.
The bank quickly received a call from Kennebunk Savings Bank claiming Bailey had submitted a loan application to Kennebunk the bank considered fraudulent.
Newburyport Five Cent Savings started digging. 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. Charles simply pocketed the cash at loan closing.
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, the secretary of state responded that C. Bailey Farms was overdue on its filing requirements and therefore it was not in good standing. Tthe letter of good standing that Bailey presented with his loan application was fake.
The bank also discovered he submitted a photoshopped 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 a 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.”