Note: In 2008, Michael Cox (Defendant), the Chief Operating Officer of Crane and Power Industries (Borrower) allegedly submitted fraudulent documents in order to secure financing for an apartment complex as an investment property. The fraudulent documents included a United States Escrow Services receipt for USD 250,000 funded with a cashier's check from Wells Fargo Bank, an Irrevocable Letter of Credit for USD 1,632,035, an account statement with a balance of USD 39,699,334.64, and a balance sheet indicating "total current assets" of over USD 84,000,000. After two monthly mortgage payments, Borrower failed to make any subsequent payments.

Defendant was criminally charged with one count of bank fraud under 18 U.S.C. §1344 and one count of knowingly making a false statement for the purpose of influencing a financial institution under 18 U.S.C. §1014. Defendant moved to bar certain evidence regarding other alleged actions. In an opinion, the U.S. District Court for the Central District of Illinois, McCuskey, J., ruled on the admissibility of unrelated evidence, granting it in part and denying it in part.

Comment: It is unclear from the ruling, but it appears that the standby was forged.



The views expressed in this Case Summary are those of the Institute of International Banking Law and Practice and not necessarily those of ICC or the other partners in DC-PRO.