Middleton man indicted on charges of financial crimes

Middleton man indicted on charges of financial crimes

A Middleton man is facing federal wire fraud, false declaration and identity theft charges.

The U.S. Attorney’s Office said Patrick S. Sweeney, 61, devised a scheme to defraud three limited liability companies in which he held a member’s ownership interest. The scene lasted four years, ending in 2011, according to a release.

The three companies were Fairview Ridge LLC, Fairview Ridge II LLC and Fairview Ridge III LLC.

The indictment said that in 2007, Sweeney approached the co-members of the companies and proposed that the companies loan $105,000 to $115,000 to a friend of Sweeney, with the loan to be secured by a home mortgage. Prosecutors said Sweeney did not facilitate a loan to his friend but instead began using money from the companies’ bank accounts for himself.

Sweeney drew checks totaling about $420,000 on the companies’ checking accounts, according to the indictment. When asked by a co-member for the original promissory note, Sweeney provided a false document with a forged signature of his friend, according to prosecutors.

The indictment also said that in 2013, Sweeney submitted a sworn list of creditors in a bankruptcy case and falsely listed the embezzled funds as “loans to debtor.”

Sweeney is also accused of using a false identity during the investigation.

If convicted, Sweeney faces up to 20 years in federal prison on the wire fraud charge, five years on the making a false declaration in a bankruptcy proceeding charge, and two years on the identity theft charge.

Comments

comments