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Thursday, July 11, 2024 | Back issues
Courthouse News Service Courthouse News Service

Man Nabbed in $9 Million Credit Scheme

MANHATTAN (CN) - A Brooklyn man agreed to pay back $9 million, and faces up to 30 years in federal prison after pleading guilty to conspiracy to commit bank fraud, the U.S. Attorney's Office said.

Edwin Jaquet, 39, led a ring that used two businesses as "furnishers" to credit bureaus, prosecutors said in announcing his guilty plea. Furnishers provide credit bureaus with information about customers who allegedly buy stuff on time and pay it off, or not.

"In exchange for thousands of dollars in fees," Jaquet and his co-conspirators provided credit bureaus with fictitious information that the two businesses had extended credit to "purported customers" who then paid off, or were paying off the loans, prosecutors said. The purported customers did this to improve their credit scores.

"Jaquet and his co-conspirators also fraudulently improved the credit histories and credit scores of some of the purported customers by deleting accurate, but negative, credit information maintained by the credit bureaus," according to the U.S. attorney's statement. "As a result of their improved credit histories and credit scores, the purported customers obtained millions of dollars in loans from banks and other lenders."

Three other alleged members of the ring were charged but have not gone to trial or entered pleas, prosecutors said.

Jacquet faces up to 30 years in prison and a fine of up to twice the gain from his offense at his July 19 sentencing.

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