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Dec. 12, 2011

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Katy Man Pleads Guilty to Bank Fraud

HOUSTON - Anthony Terrence Jerel Norris, 39, of Katy, Texas, has pleaded guilty for his role in a scheme to defraud Capital One Bank, United States Attorney Kenneth Magidson announced today. Norris pleaded guilty today to one count of bank fraud. 

Norris was the owner and president of Kaufhaus Group Inc. in Houston. In his guilty plea, Norris admitted that on or about July 6, 2007, he submitted loan applications through Kaufhaus to Capital One Bank N.A. – a federally-insured institution. Norris admitted that he requested another individual to prepare tax returns for 2005 and 2006 in the name of a borrower which contained false information as to the business income and gross receipts or sales listed on the returns. He then submitted them to Capital One in support of a requested increase in a loan for the borrower. The loan subsequently went into default causing a loss to Capital One in the amount of $409,143.01.

U.S. District Judge Lynn Hughes, who accepted the guilty plea today, has set sentencing for March 12, 2012, at which time he faces a maximum of 30 years in prison for bank fraud and making false statements to a financial institution in addition to a fine of up to $1 million. Previously released on bond, Norris was permitted to remain on bond pending his sentencing hearing.

The case was investigated by the United States Small Business Administration - Office of Inspector General and is being prosecuted by Assistant United States Attorney John Braddock.