A serial fraudster who included fraudulent letters of credit (L/Cs) in his array of instruments for duping his victims, has pleaded guilty to several charges.

Wilbur Huff, a businessman from the US state of Kentucky, pleaded guilty to perpetrating a US$53 million tax fraud, conspiring to bribe bank executives and scheming to defraud regulators.

Vortex of fraud

Huff, described by US Attorney Preet Bharara as a "vortex of fraud" pleaded guilty to four counts, including failing to pay taxes, impeding the administration of Internal Revenue Service laws and conspiracy.

The 53 year old faces 12 years in prison at his sentencing in April. He has agreed to pay nearly US$140 million in forfeiture and restitution.

L/C usage

Huff controlled a Florida payroll management company, O2HR, from which he siphoned off money from clients that was intended for paying taxes and workers' compensation.

The businessman also conspired with others to bolster the capital of Park Avenue Bank by concocting false transactions that made it appear as though the bank had received a US$6.5 million cash infusion.

Huff bribed bank officials to provide him with fraudulent L/Cs that caused Park Avenue Bank to issue millions of US dollars in loans to his companies.

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