DALLAS (CN) – Federal prosecutors accused the owner of an El Paso-based consumer lender with defrauding a Texas bank of $2 million.
Oscar Andrade, the owner of O.A. Financial Corp., was charged with one federal count of bank fraud.
According to the criminal information, O.A. Financial received a $10 million line of credit from Dallas-based Texas Capital Bank in October 2007.
The bank agreed to advance 65 percent of O.A. Financial’s “eligible” accounts receivable, consisting of all legitimate O.A. accounts that were less than 90 days past due.
Prosecutors say that for 4 months in 2008, Andrade falsified information on the bank’s borrowing base certificates in order to maintain a higher loan balance than permitted under the line of credit.
He fraudulently overstated O.A. Financial’s borrowing base availability by re-aging accounts receivables to maintain a higher loan balance and created fictitious customer accounts and receivables, according to the information.
“Andrade submitted a fraudulent borrowing base certificate to TCB, indicating ‘eligible’ receivables of $15,373,882, in order to maintain a higher loan balance than permitted,” the information states. “As a result … TCB suffered a loss of approximately $2,081,760.89.”
If convicted Andrade faces up to 30 years in prison and a $1 million fine.
As of July of 2008, O.A. Financial had 37 offices and was licensed as a consumer lender in Texas and New Mexico, according to the information.