Federal prosecutors have secured a guilty plea from a New Orleans businessman they say conspired to take out millions of dollars in business loans, that he instead used for personal expenditures.
The United States Attorney’s Office announced that 54-year-old Kenneth Charity pleaded guilty today to conspiring to defraud First NBC Bank.
Charity was charged under a bill of information, not indicted. That is usually a sign he is cooperating with prosecutors and will testify against other defendents.
“According to the Bill of Information, from in or around February 2007 through April 2017, Charity had a banking relationship with First NBC Bank, individually and through certain entities,” a news release outlined.
It goes on to say that a bank president, not named, acted as the loan officer for Charity and his businesses.
The Bill of Information refers to the president at “Bank President A” and his businesses at “the Entities.”
“By the time First NBC Bank failed, the balances on the loans issued to Charity and the entities totaled more than $18 million. Charity, Bank President A, and others knowingly conspired to defraud First NBC Bank,” according to the release.
The Bill of Information says that the purpose of the conspiracy was for Charity, Bank President A, and others to “unjustly enrich themselves.”
Further Charity admitted to “using materially false and fraudulent documents and financial statements.”
The feds say the accused overstated the value of Charity’s assets, understated his liabilities, and omitted material information.
“These false statements disguised his and the Entities’ true financial condition.”
The Bill of Information also alleges that it was part of the conspiracy they would pay the loans by taking out more loans.
“Issuing new loans to Chairty and the Entities, which would pay older loans that Charity was unable to repay.”
Charity could face up to 30 years in prison twice the gross gain to him or the gross loss of any victims.
