Former President and CFO of Advanced Materials Sentenced for Bank Fraud
|U.S. Attorney’s Office July 29, 2014|
SHERMAN, TX—A 48-year-old Collin County businessman has been sentenced to federal prison has been sentenced to federal prison for bank fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
William Guy Mortensen, formerly of Plano, Texas, pleaded guilty on Aug. 1, 2012 to bank fraud and was sentenced to 110 months in federal prison today by U.S. District Judge Ron Clark. Judge Clark also ordered Mortensen to pay restitution in the amount of $1,984,496.32.
According to information presented in court, Mortensen was the president and chief financial officer of Advanced Materials, Inc., a publicly traded company. In July 2007, Mortensen requested that Chase Bank extend and enlarge an existing $1.5 million line of credit for Advanced Materials. The loan was secured by Advanced Materials’ accounts receivable. In order to induce the bank to extend the loan, and enlarge the line of credit to $2 million, Mortensen inflated the accounts receivable numbers to make the company’s financial condition appear better than it actually was
President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney J. Andrew Williams.