Jan. 31, 2011
KATY BUSINESS MAN INDICTED FOR BANK FRAUD
(HOUSTON) - The owner of the Kaufhaus Group Inc., in Katy, Texas, has been indicted for bank fraud and making false statements to a financial institution, United States Attorney José Angel Moreno announced today.
Anthony Terrence Jerel Norris, 38 of Katy, surrendered this morning to the U.S. Marshal and was taken into custody. He made his initial appearance this afternoon before U.S. Magistrate Judge George Hanks, who set conditions of release.
According to allegations in the 10-count indictment returned by a Houston grand jury on Wednesday, Jan. 26, 2011, between November 2006 and August 2007, Norris owned Kaufhaus Group Inc., which solicited applicants who desired assistance in seeking small business loans. Norris allegedly submitted and caused to be submitted loan applications which contained false information about an applicant’s annual income and/or gross sales from the applicant’s business to Capital One N.A. On one occasion in July 2007, according to the allegations, Norris submitted and caused to be submitted to Capital One tax returns in a borrower’s name which contained false information. Capital One N.A. was allegedly defrauded of $419,000.
Each count of bank fraud and making false statements to a financial institution carries a maximum penalty of 30 years imprisonment and a fine up to $1 million.
The charges are the result of the investigation conducted by Small Business Administration-Office of Inspector General agents. Assistant United States Attorney John Braddock is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until proven guilty through due process of law.
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