A California man has been sentenced to prison for making a false statement to a bank, leading to a loss of over $2 million.
Michael Allen Cox, 39, was sentenced to 27 months in federal prison for making a false statement to the Bank of Rantoul in July 2008. Cox, who was acting as the chief operating officer for Crane and Power Industries, Los Angeles, received a loan of $1,663,459 to purchase the Parkview Rentals Apartments in Rantoul, Illinois.
However, Cox provided a false escrow receipt in the amount of $250,000 as proof of funding necessary to rehabilitate the property. In reality, no such deposit existed, and the property went into foreclosure by February 2009.
The Bank of Rantoul was unable to sell the property and was eventually deeded to the Village of Rantoul in February 2011, at a loss of approximately $2 million dollars.
Cox was also ordered to pay $650,000 restitution to the victim bank and will remain on supervised release for five years following his release from prison. During this time, he cannot engage in real estate transactions without approval from U.S. Probation.
The case investigation was conducted by the Federal Bureau of Investigation, and the case was prosecuted by Assistant U.S. Attorney Ronda H. Coleman.
Cox’s sentencing hearing took place on May 22, 2014, in Urbana, Illinois. The case is a reminder of the importance of honesty and transparency in financial dealings.
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Key Facts
- State: Illinois
- Category: White Collar Crime|Financial Crimes
- Source: DOJ Press Release â†â€â€
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