Repeat Fraudster Convicted of Fraudulent Loan and Bank Bribery Scheme | USAO-SDNY

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Damian Williams, the United States Attorney for the Southern District of New York, announced that ADEDAYO ILORI, a repeat fraudster with multiple prior fraud convictions who continued to engage in fraudulent conduct even after his guilty plea , was today sentenced to 63 months in prison for his role in a commercial loan fraud and bank corruption scheme. ILORI’s sentence was handed down by U.S. District Judge Lewis J. Liman. Co-defendants Herode Chancy and Michael Albarella, who at the time of the offense were employed as managers at a Manhattan branch of a national bank (“Bank-1”), had previously been sentenced to 30 months and six months in prison , respectively.

US Attorney Damian Williams said: “Adedayo Ilori has a history of committing fraud using other people’s identities. Here Ilori worked with banking insiders to secure over $1 million in loans for fake businesses. Ilori used stolen identities to apply for the loans and open bank accounts to receive the loan proceeds. His co-conspirators used a stolen identity provided by Ilori to launder some of the loan proceeds. The Today’s sentencing sends the message to Ilori and others involved in fraud using stolen identities that such conduct will be severely punished.

According to the allegations contained in the complaint, the indictment and the statements made in court:

From at least March 2019 until March 2020 inclusive, ILORI and Chancy conspired to fraudulently obtain commercial loans from a third party commercial lender with the intention of not repaying the loans – that is to say, with the intention of “bursting” the loans. ILORI and Chancy together submitted eight fraudulent commercial loan applications for a total of $1,020,000 in commercial loans. The business loan applications submitted by ILORI and Chancy included falsified bank statements and listed the identities of others as loan applicants, including stolen identities provided by ILORI. ILORI and Chancy also opened bank accounts using the identity of these other individuals in order to receive loan repayments from the third-party commercial lender. ILORI and Chancy then conspired with Albarella to open a bank account at Bank-1 using a stolen identity provided by ILORI to launder approximately $200,000 of the expected loan program proceeds. Albarella opened the bank account at Bank-1 using the stolen identity provided by ILORI and Chancy, and Albarella accepted a $10,000 bribe to open the bank account.

ILORI and Chancy believed that the underwriter of the third-party commercial lender was participating in the scheme and agreed to pay the underwriter a “commission” for the underwriter’s role in the scheme. In reality, however, the underwriter was an undercover law enforcement agent.

After pleading guilty in this case, ILORI continued to engage in fraudulent acts using stolen identities by renting an apartment using a stolen identity, renting a vehicle using a stolen identity, making purchases with a card banking in the name of a stolen identity and by possessing bank cards and identity cards in the name of several stolen identities. Furthermore, ILORI was indicted in this district in 21 Cr. 746 for engaging in a multi-million dollar COVID-19 loan fraud scheme, and the case is pending before Judge Vyskocil. The charges contained in the indictment 21 Cr. 746 are charges only, and the accused is presumed innocent until proven guilty.

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In addition to the prison sentence, ILORI, 43, of Queens, New York, was sentenced to three years of probation and ordered to confiscate $10,000 worth of fraudulent proceeds.

Mr. Williams praised the outstanding investigative work of the New York FBI’s Eurasian Organized Crime Task Force and the El Dorado Homeland Security Investigations Task Force.

This case is handled by the Bureau’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Tara M. La Morte and Cecilia E. Vogel are charged with the prosecution.

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