Sunday, September 25, 2022
HomeWealth ManagementDealer Sentenced For Scheme Concentrating on Church buildings

Dealer Sentenced For Scheme Concentrating on Church buildings

A Calif.-based former registered dealer/supplier was sentenced with a number of co-conspirators for defrauding numerous church buildings and an actual property growth firm out of greater than $3.5 million, by way of a scheme the sentencing decide mentioned “required a substantial amount of planning and heartlessness.” 

Jeffrey N. Crossland was sentenced to greater than 4 years in jail, in accordance with the DOJ’s announcement. Crossland was a managing member at Crossland Capital Companions, a Calif.-based b/d; in accordance with BrokerCheck, the agency’s FINRA membership was canceled in 2009 for “failure to pay charges.”

Based on the DOJ’s authentic indictment, filed in 2019, Crossland conspired with Stephen C. Parente, the top of Eagle Capital Funding Companions, a Georgia-based monetary advisory consulting follow, and Raymond Robinson, a pastor who ran a consulting agency for church buildings and in addition purportedly labored with a Missouri-based church-building firm.

The trio allegedly started working collectively in 2013; Robinson would discover the shoppers, Parente would evaluate their monetary profiles and help them in making use of for loans, whereas Crossland would supposedly supply the funding. The setup was a plan to defraud shoppers by engaging them into the mortgage agreements, in accordance with the DOJ, and the conspirators hoped to focus on church buildings by capitalizing on Robinson’s background.

Based on the DOJ, the trio drafted mortgage agreements that may require victims to deposit cash into an escrow holding account at an Ohio financial institution that may, supposedly, act as safety for the loans. Over time, victims put greater than $3.5 million into the escrow account, however in accordance with the Justice Division, the cash didn’t keep there.

“As a substitute, it was used for others’ private and enterprise bills, transferred to financial institution accounts overseas, and used to make funds to sure victims with a view to perpetuate and conceal the fraud,” the 2019 indictment towards Crossland learn. “The purported loans have been by no means funded, and thousands and thousands of {dollars} of the victims’ ‘deposits’ have been by no means returned.”

Crossland would inform victims that the cash transfers have been mortgage draw funds, however he by no means really had the cash to fund the loans. Crossland and Robinson would inform victims that their loans could be funded after which attempt to forestall them from revealing what was taking place to legislation enforcement or pursuing authorized recourse authorized choices, in accordance with the DOJ. The conduct continued by way of March 2015, in accordance with the indictment towards Crossland.

Crossland, together with the co-defendants, plead responsible to committing wire fraud final yr. Along with his jail sentence, Crossland was sentenced to 3 years of supervised launch, in addition to paying $37,873 in forfeiture and greater than $3.2 million in restitution. Robinson was sentenced to greater than three years in jail and was equally sentenced to supervised launch and to pay greater than $17,000 in forfeiture and the same quantity in restitution. Parente obtained a 33-month jail sentence, forfeiture of greater than $33,000 and greater than $2.9 million in restitution.



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