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FBI Arrests Debt Buyer on $6.8 Million Bank Fraud Charges

HoustonLynne

By HoustonLynne,
in Credit Forum

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The last post in this topic was posted 3429 days ago. 

 

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HoustonLynne

HoustonLynne

Posted
Posted

I copied this from Insid(ious)ARM -- looks like this fella had a run-in with his comeuppance. :dntknw:

 

A California office of the U.S. Justice Department announced Friday that a debt buyer was arrested on bank fraud charges related to a line of credit from a bank used to fund debt purchases. The arrest was made after an investigation by the FBI.

 

Michael T. Sahlbach of Granite Bay, Calif. was arrested Friday for six counts of bank and wire fraud, United States Attorney Benjamin B. Wagner announced on behalf of the DOJ office for the Eastern District of California. A federal grand jury returned the sealed indictment Thursday; it was unsealed after his arrest.

 

According to court documents, Sahlbach owned and operated a debt collection business, National Credit Acceptance Inc., that purchases pools of consumer debts from other companies at a discount, and then attempts to collect on these debts from the consumer. In order to purchase the debt pools, Sahlbach opened a $25 million line of credit with First Bank to help support his business. The credit agreement required that if NCA wanted to buy a debt pool, it would provide 15 percent of the cost of that pool and 85 percent would be financed by First Bank.

 

According to the indictment, on several occasions from September to December of 2008, Sahlbach represented to First Bank that he had contracted with Lender Exchange to purchase debt pools. As a result of those representations, First Bank wired a total of $6.8 million to Lender Exchange. Sahlbach had not told First Bank that he actually controlled Lender Exchange. In fact, in August 2008, he had registered it with the California Secretary of State using the alias M. Hansen and used the address of a parking garage on Capitol Mall. If First Bank had known Sahlbach controlled Lender Exchange, it would not have extended credit.

 

The indictment alleges that Sahbach did not use the money to purchase debt pools from Lender Exchange, but transferred the funds to other bank accounts he controlled. He used those funds for business expenses and to provide the 15 percent contribution to receive additional funds from First Bank. Shortly after obtaining the final disbursement from First Bank, Sahlbach defaulted on the entire line of credit with First Bank.

 

If convicted, Sahlbach faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Assistant United States Attorney Jared C. Dolan is prosecuting the case.

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cashnocredit

cashnocredit

Posted
Posted

The guy absconded with just over 5M, 6.8M - 15% He used that 15% to pull the full 6.8M from the 25M LOC. Then he promptly defaulted.

 

Hope he enjoyed it. Unlike the state, the feds don't give you much credit for good time served.

 

The commenters over at the IA article give one an appreciation for the sewer mindset that collectors have.

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JunkBuyersWorstNightmare

JunkBuyersWorstNightmare

Posted
Posted

The guy absconded with just over 5M, 6.8M - 15% He used that 15% to pull the full 6.8M from the 25M LOC. Then he promptly defaulted.

 

Hope he enjoyed it. Unlike the state, the feds don't give you much credit for good time served.

 

The commenters over at the IA article give one an appreciation for the sewer mindset that collectors have.

 

Pay your damn bills, Sahlbach!!! :rofl:

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BDK

BDK

Posted
Posted

I copied this from Insid(ious)ARM -- looks like this fella had a run-in with his comeuppance. :dntknw:

 

A California office of the U.S. Justice Department announced Friday that a debt buyer was arrested on bank fraud charges related to a line of credit from a bank used to fund debt purchases. The arrest was made after an investigation by the FBI.

 

Michael T. Sahlbach of Granite Bay, Calif. was arrested Friday for six counts of bank and wire fraud, United States Attorney Benjamin B. Wagner announced on behalf of the DOJ office for the Eastern District of California. A federal grand jury returned the sealed indictment Thursday; it was unsealed after his arrest.

 

According to court documents, Sahlbach owned and operated a debt collection business, National Credit Acceptance Inc., that purchases pools of consumer debts from other companies at a discount, and then attempts to collect on these debts from the consumer. In order to purchase the debt pools, Sahlbach opened a $25 million line of credit with First Bank to help support his business. The credit agreement required that if NCA wanted to buy a debt pool, it would provide 15 percent of the cost of that pool and 85 percent would be financed by First Bank.

 

According to the indictment, on several occasions from September to December of 2008, Sahlbach represented to First Bank that he had contracted with Lender Exchange to purchase debt pools. As a result of those representations, First Bank wired a total of $6.8 million to Lender Exchange. Sahlbach had not told First Bank that he actually controlled Lender Exchange. In fact, in August 2008, he had registered it with the California Secretary of State using the alias M. Hansen and used the address of a parking garage on Capitol Mall. If First Bank had known Sahlbach controlled Lender Exchange, it would not have extended credit.

 

The indictment alleges that Sahbach did not use the money to purchase debt pools from Lender Exchange, but transferred the funds to other bank accounts he controlled. He used those funds for business expenses and to provide the 15 percent contribution to receive additional funds from First Bank. Shortly after obtaining the final disbursement from First Bank, Sahlbach defaulted on the entire line of credit with First Bank.

 

If convicted, Sahlbach faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Assistant United States Attorney Jared C. Dolan is prosecuting the case.

LOL, you really DO read my posts you copycat-er! :lol::clapping::P

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HoustonLynne

HoustonLynne

Posted
  • Author
Posted (edited)

 

I copied this from Insid(ious)ARM -- looks like this fella had a run-in with his comeuppance. :dntknw:

 

A California office of the U.S. Justice Department announced Friday that a debt buyer was arrested on bank fraud charges related to a line of credit from a bank used to fund debt purchases. The arrest was made after an investigation by the FBI.

 

Michael T. Sahlbach of Granite Bay, Calif. was arrested Friday for six counts of bank and wire fraud, United States Attorney Benjamin B. Wagner announced on behalf of the DOJ office for the Eastern District of California. A federal grand jury returned the sealed indictment Thursday; it was unsealed after his arrest.

 

According to court documents, Sahlbach owned and operated a debt collection business, National Credit Acceptance Inc., that purchases pools of consumer debts from other companies at a discount, and then attempts to collect on these debts from the consumer. In order to purchase the debt pools, Sahlbach opened a $25 million line of credit with First Bank to help support his business. The credit agreement required that if NCA wanted to buy a debt pool, it would provide 15 percent of the cost of that pool and 85 percent would be financed by First Bank.

 

According to the indictment, on several occasions from September to December of 2008, Sahlbach represented to First Bank that he had contracted with Lender Exchange to purchase debt pools. As a result of those representations, First Bank wired a total of $6.8 million to Lender Exchange. Sahlbach had not told First Bank that he actually controlled Lender Exchange. In fact, in August 2008, he had registered it with the California Secretary of State using the alias M. Hansen and used the address of a parking garage on Capitol Mall. If First Bank had known Sahlbach controlled Lender Exchange, it would not have extended credit.

 

The indictment alleges that Sahbach did not use the money to purchase debt pools from Lender Exchange, but transferred the funds to other bank accounts he controlled. He used those funds for business expenses and to provide the 15 percent contribution to receive additional funds from First Bank. Shortly after obtaining the final disbursement from First Bank, Sahlbach defaulted on the entire line of credit with First Bank.

 

If convicted, Sahlbach faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Assistant United States Attorney Jared C. Dolan is prosecuting the case.

LOL, you really DO read my posts you copycat-er! :lol::clapping::P

:beee:

 

:angel:

 

ETA: I'd claim I was more of a coffee-catter if it weren't for the 3:24PM timestamp on my OP.

Edited by HoustonLynne
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cashnocredit

cashnocredit

Posted
Posted

 

The guy absconded with just over 5M, 6.8M - 15% He used that 15% to pull the full 6.8M from the 25M LOC. Then he promptly defaulted.

 

Hope he enjoyed it. Unlike the state, the feds don't give you much credit for good time served.

 

The commenters over at the IA article give one an appreciation for the sewer mindset that collectors have.

 

Pay your damn bills, Sahlbach!!! :rofl:

 

 

Hey! Orange is IN! Everyone is wearing it.

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BDK

BDK

Posted
Posted

 

 

The guy absconded with just over 5M, 6.8M - 15% He used that 15% to pull the full 6.8M from the 25M LOC. Then he promptly defaulted.

 

Hope he enjoyed it. Unlike the state, the feds don't give you much credit for good time served.

 

The commenters over at the IA article give one an appreciation for the sewer mindset that collectors have.

 

Pay your damn bills, Sahlbach!!! :rofl:

 

 

Hey! Orange is IN! Everyone is wearing it.

 

NOT

 

I would never look good in orange. :P

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Guest

Guest

Posted
Posted

 

 

 

The guy absconded with just over 5M, 6.8M - 15% He used that 15% to pull the full 6.8M from the 25M LOC. Then he promptly defaulted.

 

Hope he enjoyed it. Unlike the state, the feds don't give you much credit for good time served.

 

The commenters over at the IA article give one an appreciation for the sewer mindset that collectors have.

 

Pay your damn bills, Sahlbach!!! :rofl:

 

 

Hey! Orange is IN! Everyone is wearing it.

 

NOT

 

I would never look good in orange. :P

 

 

In Essex County Jail, and I am thinking back to 2011, the Fed prisoners had lime green shirts. I saw one, in the processing area. Had to stay in his own area, own holding cell, etc, as per jail security. (I think they were in holding to get to where they were going) but State is beige; County, Green; Federal was like a Mello Yellow color.

 

Orange? :huh:

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tophie

tophie

Posted
Posted

Well it sucks for him because I am sure this would be a business loan and not subject to the same laws that a personal loan would be subject to. What a dumb debt collector.


erm...pardon...what a dumb criminal.

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