Second Employee In Cash Flow Partners Bank Fraud Conspiracy Charged In Multimillion-Dollar Loan Scheme
NEWARK, N.J. – A Bergen County, New Jersey, woman has been charged for her role in a conspiracy that involved the creation of false documentation to secure over $4 million dollars in bank loans, U.S. Attorney Craig Carpenito announced.
Jennie Frias, a/k/a “Jennie Castillo,” 36, of Englewood, New Jersey, was charged by complaint with one count of conspiracy to commit bank fraud. Frias had her initial appearance Sept. 25, 2019, before U.S. Magistrate Judge James B. Clark III in Newark federal court and was released on a $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
Between March 2016 and May 2018, Cash Flow Partners LLC, a business consulting firm with offices in New York and New Jersey, released internet advertisements and held seminars offering to assist customers in obtaining bank loans, including loans insured by the Federal Deposit Insurance Corporation (FDIC). When customers submitted documentation supporting their bank loan applications to Cash Flow Partners, Frias and others created false documentation to make customers’ loan applications appear more financially viable than they actually were. Employees in Cash Flow’s “File Building Department” falsified payroll records by including fictitious financial and employment information, such as fake jobs, on template payroll forms and IRS tax forms. Then, employees in Cash Flow’s “Funding Department,” of which Frias became director, took steps to pose as the loan applicants when communicating with the victim banks. For example, Funding Department employees remotely controlled computers located at the homes of the loan applicants to submit documents to the banks. Funding Department employees also took possession of the loan applicants’ cell phones and communicated with the banks posing as the loan applicants. The victim banks sustained losses of over $4 million.
One of Frias’ conspirators, Raymundo Torres, pleaded guilty Sept. 24, 2019, to charges relating to his role in the Cash Flow bank fraud conspiracy.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine.
Individuals who believe they may have information about this case may contact the FBI at 1-800-CALL-FBI (225-5324).
U.S. Attorney Carpenito credited special agents of the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Special Agent in Charge Patricia Tarasca in New York, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Ari B. Fontecchio of the Economic Crimes Unit and J. Stephen Ferketic of the U.S. Attorney’s Office Opioids Unit in Newark.
The charge and allegations against Frias are merely accusations, and she is presumed innocent unless and until proven guilty.
Defense counsel: John D. Arseneault Esq. and John J. Roberts Esq., Chatham, New Jersey