News Summary
Bruce Howard Marko, 66, has been sentenced to prison for his involvement in a fraudulent scheme that stole over $17 million from 17 banks. He secured $2.8 million through fraudulent loans, leading to significant losses for financial institutions. Other co-conspirators are also facing sentencing. The case highlights the ongoing risks of banking fraud and the collaborative efforts of various agencies in addressing these crimes.
Charlotte – Bruce Howard Marko, a 66-year-old resident of Charlotte, has been sentenced to a year and a day in prison for his significant role in a fraudulent banking scheme that swindled over $17 million from 17 banks across the nation. In addition to his prison time, Marko has been ordered to pay $1.5 million in restitution as part of the sentence handed down by the U.S. District Court for the Western District of North Carolina.
Marko’s involvement in the scheme included directly securing $2.8 million through five fraudulent loans. The fraudulent activities, which reportedly began as far back as 2016, involved a group of at least eight partners, including Kotto Yaphet Paul, a 50-year-old from Waxhaw, North Carolina. Also implicated in the operation were individuals from Georgia, Florida, and California.
The banking scheme utilized materially false information on loan applications. Marko and his co-conspirators falsely claimed that the loans would be used for legitimate purposes such as real estate purchases, business expenses, investments, personal expenditures, and payments on prior loans. However, the actual intentions behind these loans were misleading, and most ended in default, resulting in substantial financial losses for the affected banks.
The penalties for this scheme extend beyond Marko. Kotto Yaphet Paul has yet to be sentenced, while Latoya Tamieka Ford from Georgia and Love Norman from West Palm Beach, Florida, await sentencing after entering guilty pleas for their roles in money laundering related to the fraud. Four additional co-defendants—Amrish D. Patel, Dwight A. Peebles, Jr., Denise Woodard, and Derrick L. Harrison—are currently serving prison sentences that range from 15 to 36 months for their part in the scheme.
In total, the restitution ordered for the various defendants previously convicted in this case ranges from $620,000 to over $3.1 million, reflecting the significant damages caused to the victimized banks. The financial institutions involved included recognized names such as Fifth Third Bank, Truist Bank, and PNC Bank.
The investigation into the banking fraud was a collaborative effort involving multiple government agencies. These included the Office of the Inspector General of the Federal Reserve, the Federal Housing Finance Agency, the Federal Deposit Insurance Corporation (FDIC), the Federal Bureau of Investigation (FBI), and the Internal Revenue Service (IRS) in Charlotte. U.S. Attorney Russ Ferguson commended the joint efforts of these agencies in unraveling the complex web of deceit that characterized the scheme.
The prosecution of Bruce Marko was led by Assistant U.S. Attorney Don Gast, based in Asheville, who presented a case that demonstrated the extensive network of fraud and the significant impact it had on legitimate financial institutions. The sentencing serves as a cautionary tale about the repercussions of financial fraud and the commitment of authorities to hold individuals accountable for such criminal activities.
This case highlights the risks posed by fraudulent schemes within the banking sector and underscores the importance of vigilance and integrity in financial dealings. As the legal proceedings continue for other involved parties, the focus remains on the substantial financial losses incurred and the ongoing efforts to bring justice to those affected by this elaborate criminal enterprise.
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Additional Resources
- Charlotte Observer
- Wikipedia: Bank Fraud
- Hoodline
- Google Search: Bank Fraud Scheme
- News Observer
- Encyclopedia Britannica: Bank Fraud
Author: HERE Charlotte
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