PHOENIX, Ariz. —Five defendants, including former owners of Surfside Boat Center in Mesa, Ariz., pleaded guilty to defrauding banks out of $5.4 million.
The defendants include David Allen; David’s brother Jeffrey Allen; David’s sons David B. Allen and Christopher Allen; and Matthew Ulrich.
The men were charged as using the Allen family’s high-end boat dealership to obtain millions of dollars in purchase loans from various banks. The charge stated the men took out 50 loans from 11 lenders for fake sales, and then spent the money for personal use. They then defaulted on the loans.
The men pled guilty to charges of conspiracy, bank fraud and money laundering. Under the terms of the plea agreements, all defendants face prison terms and must repay the loan balances to the banks. They will be sentenced in early August.
The Allen family opened the dealership in May 2001 and it went into bankruptcy in late 2008.
“This scheme was a family affair to rip off banks,” said U.S. Attorney Dennis K. Burke in the White Mountain Independent. “These defendants sought to get rich by taking out dozens of loans using boats that had either already been sold or used as collateral on other loans and leaving the banks holding the bag. I thank the FBI for their outstanding work on this investigation.”
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