Santa Fe Man Sentenced for Conviction on Federal False Statements Charge

ALBUQUERQUE – Arthur Herlihy, 68, of Santa Fe, N.M., was sentenced today in federal court in Albuquerque, N.M., to three years of supervised release for his conviction on making a false statement to a bank. Herlihy was also ordered to perform 100 hours of community service.

Herlihy and co-defendant Bruce Beckner, 54, a U.S. citizen currently residing in Honduras, were charged in a five-count indictment filed on June 24, 2015. The indictment alleged that in 2007, Beckner recruited Herlihy to join him in developing a business plan and securing financing to renovate a truck stop in Deming, N.M. The indictment further alleged fraudulent conduct in the operation of the truck stop, including making false statements to a bank for the purpose of obtaining a business loan.

On Feb. 3, 2017, Herlihy pled guilty to an information charging him with making a false statement to a bank. In entering the guilty plea, Herlihy acknowledged that he previously was employed by a truck stop business in Deming that was owned by several limited liability companies. Herlihy admitted that in February 2010, while employed by the truck stop business, he signed several documents in connection with a loan transaction with 1^st New Mexico Bank, including a commercial security agreement that identified the truck stop’s liquor license as part of the collateral for the loan. Herlihy obtained the loan knowing that the truck stop business did not own the liquor license outright, but still owed money to the seller of the license from a transaction that occurred in December 2008. Herlihy made a false statement to the bank when he represented that the liquor license was free and clear of any liens or lawsuits. Herlihy acknowledged that this constituted a false statement to 1^st New Mexico Bank because he intended to influence the bank to extend a loan to the truck stop business.

Beckner has yet to be arrested and is considered a fugitive. Charges in indictments and criminal complaints are only accusations, and defendants are presumed innocent unless proven guilty beyond a reasonable doubt.

This case was investigated by Homeland Security Investigations, IRS Criminal Investigation and the Special Investigations Division of the New Mexico Office of the Attorney General and is being prosecuted by Assistant U.S. Attorney Sean J. Sullivan.