David Saks: REAL ESTATE DEVELOPER NETS 3 YEARS IN PRISON FOR FALSE STATEMENTS

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

REAL ESTATE DEVELOPER NETS 3 YEARS IN PRISON FOR FALSE STATEMENTS

Real Estate Developer Sentenced to Three Years for Making False Statements

U.S. Attorney’s Office January 29, 2013
  • District of Alaska (907) 271-5071
 

ANCHORAGE—U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court in Anchorage for 12 counts of false statements to a credit union.

Lee E. Baker, Jr., 57, from Anchorage, Alaska, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline, to 36 months in prison.

According to Assistant U.S. Attorney Retta Randall, who prosecuted the case, Baker made false statements to Denali Alaskan Federal Credit Union (DAFCU) while drawing down the proceeds of a $9.2 million construction loan obtained for a proposed 85 unit apartment project, “Bryn Mawr,” located on Northern Lights Boulevard in Anchorage. Baker, as president of Discovery Construction Inc., submitted 12 draw requests certifying each time that certain work had been completed on the Bryn Mawr project, when actually, very little work had been done and the total amount Baker verified as completed was false. The Bryn Mawr project was never completed.

As a result of his false statements, approximately $4.3 million was disbursed to Baker by DAFCU before he defaulted on the loan.

Judge Beistline, after imposing sentence, stated, “Ultimately the success of the banking industry and the construction industry depends on integrity.” Judge Beistline went on to acknowledge that the construction industry in Alaska faces challenges, but insisted that, “when facing challenges, the highroad must be taken.” He further indicated that fundamental principles of honesty and integrity are necessary to deal with problems before others get hurt and that the community cannot tolerate this kind of deception. Giving Discovery Construction credit for work completed on the Byrn Mawr project, Baker was ordered to pay $3 million in restitution.

United States Attorney Karen Loeffler noted, “Financial crimes such as those committed by Baker create significant and lasting harms on the community as well as the businesses affected. The Alaska federal law enforcement community is dedicated to working together to investigate and prosecute these serious crimes.”

FBI Special Agent in Charge Mary Rook stated, “The FBI will continue to work with our law enforcement partners to address significant financial crimes which impact a wide range of individuals, businesses, and industries. As is frequently the case, the impact of this crime was more widespread than just those immediately identified as victims, as the losses sustained by Denali Alaskan Federal Credit Union were also felt by its members.”

Ms. Loeffler commends the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation Division for the investigation of this case.

source: FBI



David Saks



Time&Temp Memphis

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Comment balloon 2 commentsDavid Saks • January 30 2013 09:24AM

Comments

Yes another bad guy nets 3 years in prison.  Thanks for the information.

Posted by Tim Lorenz, 949 874-2247 (TIM LORENZ - Elite Home Sales Team) almost 7 years ago

Only one, Tim ? 4.3m is a lot of money for a loan swindler.

Get the pun ? Loan...lone :-)

Posted by David Saks ((retired)) almost 7 years ago

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