News and Press Releases

Deland Businessman Convicted For Fraud Scheme

FOR IMMEDIATE RELEASE
March 6, 2013

Jacksonville, Florida - United States Attorney Robert E. O’Neill announces that following a ten day trial, in Orlando, a jury has found Stephen B. Deluca (53, Deland) guilty of one count of conspiracy to commit wire fraud and bank fraud and thirty-two counts of wire fraud. The conspiracy conviction carries a maximum penalty of 30 years in federal prison and a fine of up to $1 million. Each wire fraud conviction carries a maximum of 20 years in federal prison and a fine of up to $250,000. The United States also intends to seek a monetary judgment of $18 million representing the amount of loss to the victim. The sentencing hearing has been set for May 24, 2013.

According to evidence presented at trial, Deluca, the president and sole shareholder of Delco Oil, Inc., engaged in a scheme to defraud several banks insured by the FDIC and a private finance company (CapitalSource Financial Services) by falsely inflating the amount and value of Delco’s inventory and accounts receivable. The inflated amounts were used to secure revolving lines of credit. The scheme resulted in an $18 million loss to CapitalSource.

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Russell C. Stoddard.

 

 

 

 

 

 

 

 

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