News and Press Releases

United States Attorney Benjamin B. Wagner
Eastern District of California

Modesto Man Sentenced to Prison for Fraudulent Small Business Loan Application

FOR IMMEDIATE RELEASE
Monday, September 30, 2013
 

www.usdoj.gov/usao/cae

usacae.edcapress@usdoj.gov

 

Docket #: 1:13-cr-202-LJO

 

 

FRESNO, Calif. — Anthony J. Vargas, 42, of Modesto, was sentenced today by U.S. District Judge Lawrence J. O’Neill to three months in prison, three months home confinement with location monitoring that provides for leaving for employment, and two years of supervised release, United States Attorney Benjamin B. Wagner announced. Vargas pleaded guilty to knowingly falsifying material facts in a loan application with the U.S. Small Business Administration (SBA). As part of his sentence, Vargas was ordered to pay $47,747 in restitution to the SBA and the bank that funded his loan.

According to court documents, in March 2009, Vargas applied to the SBA for a $50,000 small business loan under the American Recovery and Reinvestment Act of 2009 for working capital for his business Bootstrap Cabinets. Vargas signed the SBA forms, certifying that the information contained in his application was true and complete, which caused the funding bank to approve his loan. In his loan application, however, Vargas knowingly misrepresented his criminal history and, despite having earlier filed for bankruptcy, falsely represented that he had never been involved in bankruptcy proceedings. Approximately three months after being approved for and receiving the SBA loan, Vargas defaulted and filed for bankruptcy.

This case was the product of an investigation by the SBA, Office of Inspector General. Assistant U.S. Attorney Christopher Baker prosecuted the case.

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