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Grimy Times Exclusive:
A U.S. District Court jury in Dayton, Ohio convicted Paul David Musgrave, 57, of Warhaw, North Carolina of conspiring to defraud the Mutual Federal Savings Bank of Troy, Ohio, and the Small Business Administration out of $1,715,600 in connection with a business loan he sought to establish a tire recycling plant in Troy.
According to testimony presented during the seven-day trial, Musgrave and others organized Dayton International Tire Recycling as a small business intending to construct and operate a tire recycling plant at 1400 Lytle Road in Troy. Musgrave owned 81 percent interest in the company, while the rest was held by a Singapore-based corporation known as Intercontinental Trading of the British Virgin Islands.
In 2010, Musgrave applied for an SBA-backed loan for $1,715,650. In the loan application documents, he falsely certified that he would put money from his personal savings, home equity, and from a home equity line of credit toward the project.
The jury found that Musgrave provided the lender with fabricated financial documents, packing lists, commercial invoices, and bills of lading.
After deliberating three days, the jury convicted Musgrave of one count of conspiracy, two counts of wire fraud, and one count of bank fraud. He faces up to 30 years imprisonment, a $1 million fine, and five years of supervised release on each count.
U.S. District Judge Timothy S. Black will sentence Musgrave on June 13, 2013.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, commended the cooperative investigation conducted by FBI and SBA-OIG agents, as well as Assistant U.S. Attorneys Dwight Keller and Alex Sistla, who are representing the United States in the case.
Key Facts
- State: Ohio
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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