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Justice News

Department of Justice
U.S. Attorney’s Office
Middle District of Pennsylvania

FOR IMMEDIATE RELEASE
Friday, December 9, 2016

Hanover Businessman Guilty Of $150,000 Bank Fraud And Money Laundering Charges

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Matthew S. Norris, age 34, of Hanover, Pennsylvania, pled guilty on December 8, 2016, before United States District Court Judge Sylvia H. Rambo in Harrisburg, to bank fraud and money laundering charges.

According to United States Attorney Bruce D. Brandler, Norris is the owner and operator of Norris Enterprises, d/b/a Aerus Electrolux, Hanover.  Norris admitted to executing a scheme in 2011 that defrauded GE Bank out of $157,785.  Norris, as the owner/operator of Aerus Electrolux, was an authorized independent franchisee of Electrolux International, which was then located on York Street, in Hanover. Norris submitted approximately 27 credit applications under the names and identifiers of his customers to GE Bank without the customers’ knowledge or consent. By inflating the customers’ income on electronic credit applications, Norris succeeded in obtaining lines of credit for the customers to purchase Electrolux products.  Norris then charged the approved accounts for fictional merchandise sales and, as a result, GE Bank deposited the loan proceeds into Norris’s business account. 

The scheme was discovered in October of 2011 when an Electrolux executive initiated an onsite audit of Norris’ business. When GE Bank learned what Norris had done, it immediately credited all amounts owed by the customers.

Under the terms of the plea agreement with the government, Norris agreed to make restitution to GE Bank in the amount of $157,785.  No date has been set for sentencing pending preparation of a presentence report.

The investigation was conducted by the U.S. Postal Inspection Service and the Internal Revenue Service, Criminal Investigations. The case was prosecuted by Assistant United States Attorney Kim Douglas Daniel.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty under federal law for this offense is 30 years of imprisonment, a term of supervised release following imprisonment, and a $1,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

 

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Topic(s): 
Financial Fraud
Updated December 9, 2016