Matthew S. Norris, Bank Fraud and Money Laundering, Pennsylvania 2016

A Hanover businessman has been indicted on bank fraud and money laundering charges, according to the United States Attorney's Office for the Middle District of Pennsylvania.

Matthew S. Norris, 34, was arrested on September 7, and brought before United States Chief Magistrate Judge Martin C. Carlson for his initial appearance. Norris entered a plea of not guilty and was released on bail pending trial, which is scheduled for November 14, 2016, before U.S. District Court Judge Sylvia H. Rambo.

According to the indictment, Norris devised and executed a scheme in 2011 that defrauded GE Bank out of approximately $157,000. Norris, as the owner/operator of Aerus Electrolux, was an authorized independent franchisee of Electrolux International, which was then located on York Street, in Hanover.

The indictment alleges that Norris submitted approximately 27 credit applications under the names and identifiers of his customers to GE Bank without the customers' knowledge or consent. By inflating the customers' income on electronic credit applications, Norris succeeded in obtaining lines of credit for the customers to purchase Electrolux products. Norris then charged the approved accounts for fictional merchandise sales and, as a result, GE Bank deposited the loan proceeds into Norris' business account.

When the customers' monthly credit card payments became due, Norris allegedly made the payments on their behalf without their knowledge from the proceeds of the scam. Monthly statements were never sent to the customers; Norris listed his business address as their home address on the customers' electronic credit applications.

The scheme was discovered in October of 2011 when an Electrolux executive initiated an onsite audit of Norris' business. When GE Bank learned what Norris had done, it immediately credited all amounts owed by the customers. The overall net loss to the bank was approximately $150,000.

Norris, who is the owner and operator of Norris Enterprises, d/b/a Aerus Electrolux, Hanover, faces bank fraud and money laundering charges. If convicted, Norris faces up to 30 years in prison, a term of supervised release following imprisonment, and a $1,000,000 fine.

Source: https://www.justice.gov/usao-mdpa/pr/hanover-businessman-indicted-150000-bank-fraud-and-money-laundering-charges