Former Pharmaceutical Executive Pleads Guilty to Falsifying Financial Documentation
DETROIT - A Northville man pleaded guilty today to providing a financial institution with false documentation in connection with a bank loan, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson, Federal Bureau of Investigation, Detroit Field Division
Theodore Toloff, 65, entered his guilty plea today before United States District Judge David M. Lawson.
According to court records, Toloff served as the Chief Financial Officer of the Frank W. Kerr Company (“Kerr”), a now-defunct pharmaceutical wholesaler that had been based in Novi, Michigan. Kerr had a revolving credit agreement with two large financial institutions under which the company borrowed funds up to $60 million pursuant to a calculation dependent on the company’s eligible accounts receivable and inventory. Toloff admitted that he submitted false documentation to the financial institutions that included $18 million in ineligible accounts receivable and that Kerr borrowed additional funds after this false documentation was submitted.
“Today’s guilty plea reflects my office’s continued commitment to ensuring that our banking and lending systems are not distorted through false financial information,” stated United States Attorney Dawn N. Ison.
“The defendant admitted to providing false documents to a financial institution, undermining the law and integrity of our financial systems, said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. "The FBI works tirelessly with our partner law enforcement and regulatory agencies to investigate those who commit financial crimes. We urge the public to submit tips on alleged crimes such as those detailed in this case to 1-800-CALLFBI (1-800-225-5324) or online at www.tips.fbi.gov."
Toloff faces a statutory maximum penalty of 30 years imprisonment.
The case is being prosecuted by Assistant U.S. Attorney Andrew J. Yahkind. The investigation was conducted by the Federal Bureau of investigation.