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Justice News

Department of Justice
U.S. Attorney’s Office
Northern District of Texas

Thursday, March 17, 2016

Dallas Businessman Admits Fraud

Defendant Defrauded Opportunity Bank of Nearly $2 Million

DALLAS — James Edward McIntire, 52, of Dallas, appeared this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to one count of bank fraud regarding a line of credit he applied for and obtained from the bank, announced U.S. Attorney John Parker of the Northern District of Texas.

McIntire faces a maximum statutory penalty of 30 years in federal prison and a $1 million fine.  Restitution is mandatory.  McIntire remains on bond; a sentencing date was not set.

According to documents filed in the case, McIntire founded the business, McIntire and Associates (MA).  To support ongoing operations, MA often needed to obtain loans and/or lines of credit from banks or from some other funding source.  MA would often provide security for the line or line of credit by using MA’s accounts receivable as collateral for the loan.

From approximately April 2008 through May 2009, McIntire ran a scheme to deceive and fraud Opportunity Bank of Richardson, Texas, in order to fraudulently obtain approval of a $2 million line of credit from the bank, using MA’s accounts receivables as security.  When MA initially applied for the line of credit, McIntire falsely represented and fraudulently inflated the total amount of MA counts receivable submitted to Opportunity Bank in order to mislead and deceive the bank about the collateral’s true value. 

McIntire admits that in order to maintain access to this line of credit he fraudulently inflated the value of MA’s accounts receivables to have access to a higher line of credit than what Opportunity Bank would have extended to him had he disclosed the true value of MA’s accounts receivables.  In addition to submitting a large number of false and fraudulent weekly and monthly accounts receivable schedules to Opportunity Bank, McIntire also created fictitious packing slips and invoices for MA products that were not actually shipped to the customer, which caused the dollar value of the MA accounts receivable to be falsely inflated. 

McIntire failed to repay the line of credit to Opportunity Bank, causing the bank to suffer a loss of $1,997,215.

The FBI is investigating the case.  Assistant U.S. Attorney David Jarvis is in charge of the prosecution.

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Financial Fraud
Updated March 17, 2016