Allegedly Used Loans Obtained in Fraud Scheme to Buy Two Porsches
Baltimore, Maryland – A federal grand jury indicted Lorita Frazier, age 47, of Westminster, Maryland, on charges of bank fraud, wire fraud and embezzling over $74,000 of postal funds, announced United States Attorney for the District of Maryland Rod J. Rosenstein. The indictment was returned on December 2, 2008 and unsealed yesterday. Frazier surrendered this morning to the U.S. Marshal Service.
According to the four count indictment, Frazier was employed as a clerk by the U.S. Postal Service. From April 2004 to July 2005, she is alleged to have applied for loans from a credit union in Baltimore and a mortgage lender, falsely claiming on the loan applications: to receive monthly income ranging from $2,228.12 to $8,727.63 from a day care center; and that she owned and materially participated in the day care’s operation. She allegedly prepared fraudulent federal income tax returns to document the false income she had reported on the loan applications, which differed substantially from the tax returns she filed with the IRS. The credit union and mortgage lender relied on the false loan applications and false tax returns in approving a loan from the credit union of $56,670.50 to purchase a 2004 Porsche; another loan from the credit union of $100,152.45 to purchase a 2004 Porsche Turbo; and a loan from the mortgage lender to increase Frazier’s mortgage to $504,000.
The indictment also alleges that from October 14, 2004 to June 14, 2005 Frazier embezzled $74,726.27 from the Postal Service.
Frazier faces a maximum sentence of 30 years in prison for bank fraud; 20 years in prison for wire fraud; and 10 years in prison for embezzlement. She is scheduled to have her initial appearance in federal district court at 2:30 p.m. today.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein thanked the U.S. Postal Service – Office of Inspector General for its investigative work and commended Assistant United States Attorney Tamera Fine, who is prosecuting the case.