San Diego Man Pleads Guilty To Federal Bank & Tax Fraud In Loan Scheme

SAN DIEGO, CA — A San Diego man pleaded guilty Monday to federal bank and tax fraud charges for using other people's personal information to apply for loans and lines of credit.

Alvin Pates, 54, used the names, social security numbers and other information from "straw borrowers" who received a portion of the loans as kickbacks in return for their info, according to the U.S. Attorney's Office.

According to his plea agreement, applications submitted by Pates and others contained false information regarding the borrowers' income and employment, complete with false paystubs, tax forms, and bank statements. Pates also sometimes posed as the borrowers in phone calls with bank officials in order to secure loans, according to prosecutors.

The total value of the fraudulent loans was $87,000 and Pates' plea agreement states the conduct occurred over the course of nearly six years.

Pates also admitted to preparing false tax returns for two people in 2015, which netted one of the people a refund check from the IRS exceeding $375,000. The check was issued due to false information regarding that person's income and was eventually returned to the IRS.

— City News Service