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Charged In Bank Fraud Scheme

FOR IMMEDIATE RELEASE
February 3, 2012

 

Gerald Cathie, 50, of Sicklerville, NJ, was charged today by information for his role in a bank fraud scheme, that resulted in losses of over $3 million, by submitting loan applications with false documentation, announced United States Attorney Zane David Memeger. Cathie was charged with conspiracy to commit bank and wire fraud, bank fraud, bribery of a bank employee, and willful failure to file tax returns.

According to the information, between 2006 and 2008, Cathie was a loan broker who obtained both line of credit (LOC) and mortgage loans for borrowers by inflating the borrowers’ income on the loan applications, by creating phony tax documents, by providing false tax returns and by providing false banks statements. Cathie conspired with others, including John C. Lucidi, Jr. who pleaded guilty to similar charges, to ultimately defraud Wachovia Bank, Bank of America, Countrywide Bank, and other mortgage lenders of $3,212,329.79. The information further charges that Cathie failed to file federal income tax returns for both his business and personal taxes.

If convicted, the defendant faces a maximum possible sentence of 66 years in prison, a $2.275 million fine, a five year period of supervised release, and a $325 special assessment.

The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, and the United States Secret Service and is being prosecuted by Assistant United States Attorney Denise S. Wolf.



UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

 

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