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Mug Shot Monday – Borrower’s CFO Pleads Guilty for Fake Financial Statements

August 11, 2014

By Bob Coleman
Editor, Coleman Report

financialstatement-2Why pay for a CPA reviewed financial statement when you can photoshop one?

Today’s perp was the CFO of a Topeka, Kansas holding company for five construction service companies.

Needing to show a profit in order to maintain their credit lines and construction bonds the CFO typed up a financial statement showing a profit and slapped on the CPA’s review statement.

Problem is he did it to a community bank that received a TARP fund investment, which was sold at a discount by the Feds.

Timothy Fitzgerald pled guilty to one count of bank fraud last week.

Says SIGTRARP, (Special Inspector General for TARP (SIGTARP). “Fitzgerald gave the bank cooked books that whitewashed KC United’s losses and concealed the red ink, a fraud which included a forged auditor signoff. The bank relied on these falsified documents to extend loans, and after three KC United companies filed for bankruptcy, the bank suffered a loss of more than $877,000. Bank of Blue Valley did not repay TARP and missed 18 quarterly dividend payments totaling $4.9 million, money owed to taxpayers as a result of the bank holding TARP funds. Treasury sold its TARP investment in the bank at a principal loss of nearly $500,000, a loss in addition to the uncollected TARP dividend payments. SIGTARP and our law enforcement partners will bring swift justice to those who defraud TARP banks and risk taxpayers’ TARP investments.”

Our perp faces the obligatory 30 years in prison and a $1 million fine.

Read more from FBI.gov

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