Bank Insider Sentenced For Fraudulent Loan Scheme
summary
Herode Chancy, a former bank manager, was sentenced to 30 months in prison for orchestrating a $1.025 million commercial loan fraud scheme using stolen identities and forged documents, conspiring with accomplices to launder proceeds, and being caught when an undercover officer posed as the loan underwriter.
paragraph
Herode Chancy, a manager at Bank-1, was sentenced to 30 months in prison for conspiring with Adedayo Ilori and Michael Albarella to defraud a commercial lender of $1,025,000 through eight fraudulent loan applications using stolen identities and doctored bank statements. Chancy and Ilori opened accounts in victims’ names to receive loan funds, while Albarella, another bank manager, accepted a $10,000 bribe to open a laundering account using a stolen identity. The scheme unraveled when the underwriter was an undercover law enforcement officer; Chancy was ordered to forfeit $10,000 and serve two years of supervised release, while Albarella received six months in prison.
narrative
Herode Chancy, a manager at Bank-1, conspired with Adedayo Ilori to defraud a third-party commercial lender of $1,025,000 by submitting eight fraudulent business loan applications between March 2019 and March 2020, using stolen identities and doctored bank statements with no intent to repay. To launder approximately $200,000 in proceeds, they enlisted Michael Albarella, another Bank-1 manager, who accepted a $10,000 bribe to open a bank account under a stolen identity. Chancy and Ilori believed an underwriter was complicit and agreed to pay him a commission, but the underwriter was in fact an undercover law enforcement officer, leading to the scheme’s exposure. Chancy was sentenced to 30 months in prison, two years of supervised release, and ordered to forfeit $10,000 in fraudulent proceeds. Albarella was sentenced to six months in prison and three years of supervised release on August 5, 2021, while Ilori is scheduled for sentencing on October 13, 2021. The case was investigated by the FBI’s Eurasian Organized Crime Task Force and HSI’s El Dorado Task Force, and prosecuted by the Southern District of New York’s Money Laundering and Transnational Criminal Enterprises Unit. This case underscores the Department of Justice’s commitment to holding financial insiders accountable for abusing their positions to commit fraud.
Classified corporate-fraud(confidence 95%). EDGAR detection: forms 10-K/10-Q/8-K· recall 56% / precision 8%. detection rule →
Statutes
Parties
adedayo iloriaudrey straussfraud schemeherode chancylewis j. limanmichael albarellastolen identities
Keywords
bankchancychancy iloriloanschemeloan schemeilorilinkloansbank insiderinsider fraudulentfraudulent loangovernment non-governmentnon-government sitessites typically
Extracted insights
Dollar amounts 4
- $1.02M $1,025,000 $1M–$10M
- $1.00M $1 million $1M–$10M
- $200K $200,000 $100K–$1M
- $10K $10,000 $10K–$100K
Entities 7
- person adedayo ilori
- person audrey strauss
- person fraud scheme
- person herode chancy
- person lewis j. liman
- person michael albarella
- person stolen identities
Triples 17
- Herode Chancy sentenced to 30 months in prison
- Herode Chancy employed as manager at Manhattan branch of Bank-1
- Herode Chancy conspired to fraudulently obtain business loans totaling $1,025,000
- Herode Chancy submitted eight fraudulent business loan applications
- Herode Chancy ordered to forfeit $10,000 in fraudulent proceeds
- Adedayo Ilori conspired with Herode Chancy to fraudulently obtain business loans
- Adedayo Ilori scheduled to be sentenced October 13, 2021
- Michael Albarella employed as bank manager at Bank-1
- Michael Albarella sentenced to six months in prison
- Michael Albarella accepted $10,000 bribe
- Herode Chancy age 41
- Herode Chancy resides in Bellerose, New York
- Audrey Strauss announced sentencing of Herode Chancy
- Lewis J. Liman imposed sentence on Herode Chancy
- Fraud scheme involved doctored bank statements and stolen identities
- Chancy and Ilori opened bank accounts using stolen identities
- Chancy and Ilori laundered approximately $200,000
Extracted body text (4,108c)
Press Release Bank Insider Sentenced For Fraudulent Loan Scheme Wednesday, September 8, 2021 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that HERODE CHANCY, who at the time of the offense was employed as a manager at a Manhattan branch of a national bank (“Bank-1”), was sentenced today to 30 months in prison for his role in a commercial loan fraud scheme for loans totaling over $1 million. CHANCY’s sentence was imposed by United States District Judge Lewis J. Liman. U.S. Attorney Audrey Strauss said: “Bank employee Herode Chancy used fake businesses, doctored bank statements, and stolen identities in an effort to obtain over $1 million in commercial loans. Now Chancy has rightly been sentenced to prison for his crime. Prosecutions like this one should serve as notice to individuals in positions of trust at financial institutions that engaging in corrupt criminal conduct will lead to prosecution and prison.” According to the Complaint, Indictment, and statements made in court: From at least in or about March 2019 up to and including at least in or about March 2020, CHANCY and codefendant Adedayo Ilori conspired to fraudulently obtain business loans from a third-party commercial lender with the intent not to repay the loans – i.e., with the intent to “bust out” the loans. CHANCY and Ilori together submitted eight fraudulent business loan applications for a total of $1,025,000 in business loans. The business loan applications submitted by CHANCY and Ilori included doctored bank statements and listed the identities of other persons as the loan applicants, including stolen identities. CHANCY and Ilori also opened bank accounts using the identities of those other persons in order to receive the loan payments from the third-party commercial lender. CHANCY and Ilori subsequently conspired with codefendant Michael Albarella, another bank manager at Bank-1, to open a bank account using a stolen identity to launder approximately $200,000 of the expected proceeds of the loan scheme. Albarella opened the bank account at Bank-1 using the stolen identity provided by CHANCY and Ilori, and Albarella accepted a $10,000 bribe to open the bank account. CHANCY and Ilori believed that the underwriter for the third-party commercial lender was participating in the scheme and agreed to pay the underwriter a “commission” for the underwriter’s role in the scheme. In reality, however, the underwriter was an undercover law enforcement officer. * * * In addition to the prison term, CHANCY, 41, of Bellerose, New York, was sentenced to two years of supervised release and ordered to forfeit $10,000 in fraudulent proceeds. On August 5, 2021, Albarella was sentenced to six months in prison and three years of supervised release by Judge Liman. Ilori is scheduled to be sentenced on October 13, 2021. Ms. Strauss praised the outstanding investigative work of the New York FBI’s Eurasian Organized Crime Task Force and Homeland Security Investigation’s El Dorado Task Force. This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Tara M. La Morte and Cecilia E. Vogel are in charge of the prosecution. Contact Nicholas Biase, James Margolin (212) 637-2600 Updated September 8, 2021 Topic Financial Fraud Component USAO - New York, Southern Press Release Number: 21-232
OCR text (4,108c · plain-text · 99% conf)
Press Release Bank Insider Sentenced For Fraudulent Loan Scheme Wednesday, September 8, 2021 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that HERODE CHANCY, who at the time of the offense was employed as a manager at a Manhattan branch of a national bank (“Bank-1”), was sentenced today to 30 months in prison for his role in a commercial loan fraud scheme for loans totaling over $1 million. CHANCY’s sentence was imposed by United States District Judge Lewis J. Liman. U.S. Attorney Audrey Strauss said: “Bank employee Herode Chancy used fake businesses, doctored bank statements, and stolen identities in an effort to obtain over $1 million in commercial loans. Now Chancy has rightly been sentenced to prison for his crime. Prosecutions like this one should serve as notice to individuals in positions of trust at financial institutions that engaging in corrupt criminal conduct will lead to prosecution and prison.” According to the Complaint, Indictment, and statements made in court: From at least in or about March 2019 up to and including at least in or about March 2020, CHANCY and codefendant Adedayo Ilori conspired to fraudulently obtain business loans from a third-party commercial lender with the intent not to repay the loans – i.e., with the intent to “bust out” the loans. CHANCY and Ilori together submitted eight fraudulent business loan applications for a total of $1,025,000 in business loans. The business loan applications submitted by CHANCY and Ilori included doctored bank statements and listed the identities of other persons as the loan applicants, including stolen identities. CHANCY and Ilori also opened bank accounts using the identities of those other persons in order to receive the loan payments from the third-party commercial lender. CHANCY and Ilori subsequently conspired with codefendant Michael Albarella, another bank manager at Bank-1, to open a bank account using a stolen identity to launder approximately $200,000 of the expected proceeds of the loan scheme. Albarella opened the bank account at Bank-1 using the stolen identity provided by CHANCY and Ilori, and Albarella accepted a $10,000 bribe to open the bank account. CHANCY and Ilori believed that the underwriter for the third-party commercial lender was participating in the scheme and agreed to pay the underwriter a “commission” for the underwriter’s role in the scheme. In reality, however, the underwriter was an undercover law enforcement officer. * * * In addition to the prison term, CHANCY, 41, of Bellerose, New York, was sentenced to two years of supervised release and ordered to forfeit $10,000 in fraudulent proceeds. On August 5, 2021, Albarella was sentenced to six months in prison and three years of supervised release by Judge Liman. Ilori is scheduled to be sentenced on October 13, 2021. Ms. Strauss praised the outstanding investigative work of the New York FBI’s Eurasian Organized Crime Task Force and Homeland Security Investigation’s El Dorado Task Force. This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Tara M. La Morte and Cecilia E. Vogel are in charge of the prosecution. Contact Nicholas Biase, James Margolin (212) 637-2600 Updated September 8, 2021 Topic Financial Fraud Component USAO - New York, Southern Press Release Number: 21-232