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Weichman’s Bank Fraud Scheme Collapses
HAMMOND, IN – In a devastating blow to the Weichman family’s reputation, Jack Weichman, a 64-year-old local accountant and business owner, has entered guilty pleas to multiple counts of bank fraud, concealment of assets, wire fraud, and filing a false tax return.
According to court documents, Weichman stole $10,000 from one of his physician clients during a bank fraud scheme that saw at least $660,000 illegally removed from that client’s account. The scheme involved Weichman, the owner of Weichman & Associates, and his medical billing operation, MMDS.
Weichman also admitted hiding an almost $2 million dollar tax debt to the IRS from another bank at a time when he was seeking to renew a loan from that bank. He further admitted hiding hundreds of thousands of dollars from his bankruptcy creditors in January 2011, and removing $95,000 from a client’s retirement fund on April 25, 2012, by having one of his employees pretend to be the client during a phone call to the retirement fund.
Weichman’s employee, William Bercaw, 69, of Munster, Indiana, entered his own guilty plea to one count of wire fraud relating to the $95,000 illegally removed from a client’s retirement fund account on April 25, 2012.
Another Weichman employee, James Schaefer, 66, of Lowell, Indiana, along with Weichman’s son Ari Weichman, 36, of Schererville, Indiana, entered separate guilty pleas to a one count information charging them with providing false information to US Bancorp in an effort to secure a loan for Jack Weichman’s business, MMDS.
Sentencing for all defendants is set for January 27, 2017. This case was investigated by the Federal Bureau of Investigation, Federal Deposit Insurance Corporation-Office of Inspector General and Internal Revenue Service-Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorneys Diane L. Berkowitz and Maria N. Lerner.
The guilty pleas mark a significant victory for federal authorities, who have been investigating the Weichman family’s business dealings for years. The case highlights the importance of holding public officials and business leaders accountable for their actions.
Key Facts
- State: Indiana
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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