Larry Clough Imprisoned for Defrauding Banks in Credit Scam
Burlington, VT – The Office of the United States Attorney for the District of Vermont announced that Larry Clough, 57, of Rutland, was sentenced yesterday in United States District Court in Burlington to 15 months of imprisonment following his guilty plea to making false statements in credit applications. U.S. District Judge William K. Sessions III also ordered that Clough serve a three-year period of supervised release following completion of his prison term and will order Clough to pay full restitution in an amount to be determined. The court ordered Clough to surrender to the Bureau of Prisons on July 10 to begin serving his sentence.
On March 9, 2011, a federal grand jury in Rutland returned a 12-count indictment charging Clough with bank fraud and engaging in financial transactions in excess of $10,000 with proceeds of the fraud. According to the indictment, between 2008 and 2009, Clough defrauded nine banks and credit card companies of several hundred thousand dollars by obtaining a series of credit cards and lines of credit, then maxing out the credit limits, primarily by writing convenience checks against the accounts. Some of the checks were for $30,000 or more. According to the indictment, once Clough obtained the funds from the card issuers, he stopped making payments on his credit accounts. The indictment further alleges that Clough wired most of the misappropriated funds overseas, mostly to persons in Ghana, Nigeria and the Ivory Coast.
In addition, the indictment accuses Clough of trying to defraud Merchants Bank by depositing a $238,000 check, which had been issued by the University of Colorado and then stolen after the University mailed it to the vendor in Canada. The check was altered to make Clough the payee. Clough tried to deposit the check into his own account at Merchants and then withdraw the funds before the forged or counterfeit check was dishonored.
This past January, Clough pleaded guilty to a related bank fraud charge that accused him of fraudulently overstating his income in credit applications he filed with the victim banks and credit card companies.
This case was investigated by the United States Secret Service.
Clough is represented by Assistant Federal Public Defender Stephen Barth. The prosecutor is Assistant U.S. Attorney Gregory Waples.