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Two Men Who Defrauded Banks in Connection with USDA Export Financing Program Sentenced to Prison
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that two men involved in a multimillion dollar scheme to defraud banks participating in a USDA-backed export financing program were sentenced yesterday in New Haven federal court.
Chief U.S. District Janet C. Hall sentenced Brett C. Lillemoe, 47, of Minneapolis, Minn., to 15 months of imprisonment and Pablo Calderon, 61, Darien, Conn., to five months of imprisonment and five months of home confinement. Chief Judge Hall also ordered both men to serve a three-year term of supervised release, and to pay restitution in the amount of $18 million and forfeit more than $1.5 million of ill-gotten gains.
On November 9, 2016, a federal jury convicted Lillemoe and Calderon of conspiracy and fraud offenses. According to court documents, statements made in court and the evidence introduced during the trial, Lillemoe and Calderon submitted fraudulent documents to two United States banks in connection with a USDA loan guarantee program by which the USDA provides credit guarantees.
The credit guarantees are part of the USDA Export Credit Guarantee Program (GSM-102), which is designed to encourage financing of commercial exports of U.S. agricultural products. The GSM-102 program guarantees credit extended by U.S. financial institutions to approved foreign banks.
In connection with the GSM-102 program, a foreign importer that has contracted to buy U.S. agricultural products can apply for a letter of credit (“LOC”) from a foreign bank that has been approved by the USDA’s Foreign Agricultural Service (FAS). The foreign bank then issues a letter of credit in favor of the U.S. exporter.
Between September 2007 and January 2012, Lillemoe, Calderon and others defrauded various U.S. financial institutions, including Deutsche Bank A.G. and Colorado-based CoBank ACB, by presenting false and altered shipping documents, including altered bills of lading, in connection with securing funding on loans guaranteed by the GSM-102.
As part of the scheme, Lillemoe and Calderon established multiple entities with separate names for the purpose of obtaining a greater share of the allocation of guarantees from the GSM-102 program, and used multiple bank accounts in the names of the various entities in order to further create the appearance that the entities were legitimate business entities.
Defendant information:
Defendant Name: Brett C. Lillemoe
Criminal Charges: Conspiracy and fraud offenses
City and State: Minneapolis, Minn.
Date: November 9, 2016 (conviction), March 2023 (sentencing)
Sentence: 15 months of imprisonment, three-year term of supervised release, and to pay restitution in the amount of $18 million and forfeit more than $1.5 million of ill-gotten gains
Amounts: $18 million (restitution), $1.5 million (forfeited)
Key Facts
- State: Connecticut
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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