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Deland Businessman Guilty of $18 Million Fraud Scheme
A Deland businessman was found guilty of a $18 million fraud scheme after a ten-day trial in Orlando.
Stephen B. Deluca, the 53-year-old president and sole shareholder of Delco Oil, Inc., was convicted of one count of conspiracy to commit wire fraud and bank fraud and 32 counts of wire fraud.
The conspiracy conviction carries a maximum penalty of 30 years in federal prison and a fine of up to $1 million. Each wire fraud conviction carries a maximum of 20 years in federal prison and a fine of up to $250,000.
The United States also intends to seek a monetary judgment of $18 million representing the amount of loss to the victim.
According to evidence presented at trial, Deluca engaged in a scheme to defraud several banks insured by the FDIC and a private finance company, CapitalSource Financial Services, by falsely inflating the amount and value of Delco’s inventory and accounts receivable.
The inflated amounts were used to secure revolving lines of credit. The scheme resulted in an $18 million loss to CapitalSource.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Russell C. Stoddard. Sentencing has been set for May 24, 2013.
Key Facts
- State: Florida
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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