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March 26, 2012

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Katy Man Sentenced to Prison for Bank Fraud

HOUSTON - Anthony Terrence Jerel Norris, 39, has been sentenced to federal prison for his role in a scheme to defraud Capital One Bank, United States Attorney Kenneth Magidson announced today. Norris, of Katy, Texas, pleaded guilty Dec. 12, 2011.

Today, U.S. District Judge Lynn Hughes handed Norris a sentence of 24 months which will be followed by five years of supervised release. He was further ordered to pay restitution in the amount of $409,143 to Capital One N.A., a federally insured bank.

Norris was owner and president of Kaufhaus Group Inc. through which he submitted loan applications to Capital One. Norris admitted that on or about July 6, 2007, he submitted loan applications to Capital One. Norris admitted he had requested another individual to prepare tax returns for 2005 and 2006 in the name of the borrower which contained false information as to the business income and gross receipts or sales listed on the returns and that 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.

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.