Sarasota Man Pleads Guilty to Conspiracy to Commit Bank Fraud
|U.S. Attorney’s Office November 06, 2012|
TAMPA—United States Attorney Robert E. O’Neill announces that Arthur R. Seaborne (69, Sarasota) today pleaded guilty to conspiracy to commit bank fraud. Seaborne faces a maximum penalty of five years in federal prison. A sentencing hearing has been set for January 24, 2013.
According to the plea agreement, from as early as March 2003 through July 2008, Seaborne and others conspired to commit bank fraud. Throughout that time, Seaborne used several corporate entities to perpetuate the fraud scheme, including Southeast Capital Advisors LLC. Through this entity, Seaborne marketed a “no money down” residential purchase program that operated by making loans to his clients, enabling his clients to make down payments in connection with purchases of residential properties.
Thereafter, Seaborne and his co-conspirators prepared and submitted mortgage loan applications to lenders for these same clients. The applications were fraudulent in that they omitted the fact that the clients’ down payments had been loaned. Further, the applications usually overstated the clients’ assets and understated their liabilities. Some loan applications also included the fraudulent misrepresentation that the clients intended to use the properties as their primary residences, when, in fact, they were investment properties.
Over the course of the fraud scheme, some of the loans on the residential properties went into default. The losses incurred by the lenders in connection with 49 such residential properties totaled $6,817,821.55.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Rachelle DesVaux Bedke and Joseph W. Swanson.