Fake Leases Used to Support CRE Loan Valuation Bring Bank Fraud Charges on $3.8 Million Loan
March 27, 2026
Bob Coleman
Founder & Publisher
Fraud Friday: Fake Leases Used to Support CRE Loan Valuation Bring Bank Fraud Charges on $3.8 Million Loan
According to a March 20, 2026, Grand Jury Indictment, Charles Sargent set out to acquire the Chase Block building at 1037–1045 Elm Street in Manchester, New Hampshire, back in February 2018.
The seller agreed to sell the property for $2.7 million.
To fund the acquisition, Sargent applied for a bridge loan from a private lender. In that application, he stated the purchase price was $4.7 million.
He submitted fabricated bank statements, photoshopped leases, and checks to support that figure and to portray the property as having higher income and stronger creditworthiness.
In April 2018, the private lender approved a $3.5 million bridge loan.
On April 9, 2018, two deed transfers were recorded. The first showed the property moving from the seller’s company to Chase Block Realty Associates for $2.7 million.
The second showed a transfer from Chase Block Realty Associates to 1037–1045 Elm Street LLC for $4.7 million. Sargent owned and controlled 1037–1045 Elm Street LLC.
No $4.7 million payment was made by Sargent or anyone acting on his behalf.
With the bridge loan in place, Sargent sought permanent financing. He applied to Optima Bank to refinance the $3.5 million bridge loan. In that application, he again represented that the property had been purchased for $4.7 million.
He again submitted the fraudulent documents to support both the valuation and the income stream.
Optima Bank approved the permanent commercial real estate loan for $3.8 million.
In June 2018, Optima Bank identified the discrepancy. The bank learned that the property had been sold for $2.7 million and that, on the same day, another sale was recorded for $4.7 million.
Sargent told the bank the lower price reflected a reduction for tax purposes.
The property was foreclosed upon in February 2020 for an undisclosed price.
Sargent’s attorney told Manchester’s ABC affiliate WMUR that his client will plead not guilty.