First Hawaiian Bank Credit Line Used in Mainland Fraud Scheme… More Troubles for Chevrolet

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The former co-owner of Tracy Chevrolet pleaded not guilty in federal court on Monday to charges of scamming a bank out of $2.5 million, the U.S. Attorney’s Office in Sacramento announced.

Stephen Kraut, 46, of Discovery Bay could spend as many as 30 years in federal prison, five years of supervised release and get fined $1 million if convicted of all 15 charges. Kraut is out of custody until his next court appearance on June 5.

A federal grand jury on April 30 handed down a 15-count indictment charging Kraut with using his position as general manager of Tracy Chevrolet to secure an $11 million line of credit in early 2005 through First Hawaiian Bank to pay for outside business ventures, among other things, when he agreed to use the money to buy and resell cars for the Tracy dealership. Kraut took out a second $12.1 million line of credit in 2006. He used $2.5 million from those accounts for his alleged scheme…

…The indictment says Kraut also gave false financial statements to the bank to make it look like the dealership was making money, when in fact it was operating at a loss.

Kraut “knowingly and with intent to defraud, caused Tracy Chevrolet to become ‘out of trust’ with First Hawaiian Bank,” according to the indictment. Kraut allegedly used some of the defrauded money “to make lulling payments” to the bank “in order to continue the fraud scheme.” He allegedly used the rest to keep the dealership open, pay himself monthly bonuses and as interest-free loans to finance his personal business ventures…

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One Response

  1. SINCE I HAVE BEEN MISSING FUNDS FROM MY CD AND CHECKING ACCOUNT THROUGH FHB COULD THIS BE THE CAUSE OF THE MISSING FUNDS?

    COULD THIS PERSON HAVE INSIDE ASSISTANCE OR INSERTED SOME KIND OF NSA LIKE HACKING MALWARE CODE TO STEAL FUNDS? THIS SOUNDS A BIT LIKE A HOLLYWOOD MOVIE BUT IT IS MY UNDERSTANDING THAT THIS TYPE OF MALWARE HACKING CODES CAN CHANGE INFORMATION AND LEAVE VERY LITTLE TRACE OF THE CRIME…I HAVE NOTICE DINGS TO MY OVERDRAFT AND MISSING PAYMENTS FROM PAYMENTS MADE MONTHS TO YEARS AGO…HELD CREDIT AND UNAUTHORIZED CHARGES MADE FROM THE EAST COAST AND FLORIDA….

    CAN YOU HELP LOCATE MISSING FUNDS?

    KATHY TSUYEMURA

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