Former Dallas Businessman Sentenced for Nearly $2 Million Bank Fraud
DALLAS — James Edward McIntire, 54, of Dallas, was sentenced today before Chief U.S. District Judge Barbara M.G. Lynn to 27 months in federal prison and ordered to pay $1,997,215 in restitution for bank fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
McIntire pleaded guilty in March 2016 to one count of a bank fraud scheme to defraud Opportunity Bank. Judge Lynn ordered him to surrender to the Bureau of Prisons on January 2, 2018.
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 March 2008 through September 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 accounts receivable submitted to Opportunity Bank in order to mislead and deceive the bank about the collateral’s true value.
In court filed documents, McIntire admitted that as part of the scheme to defraud, he fraudulently inflated the value of MA’s accounts receivables in order to have access to a higher line of credit than what Opportunity Bank would have approved 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. As part of the scheme to defraud, McIntire repeatedly submitted falsely inflated accounts receivable figures to Opportunity Bank over an 18 month period in order to continue to make draws on the line of credit.
McIntire failed to repay the line of credit to Opportunity Bank, causing the bank to suffer a loss of $1,997,215.
The Dallas FBI investigated the case. Assistant U.S. Attorney David Jarvis prosecuted.
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