BATON ROUGE, La. (AP) — A Louisiana man has pleaded guilty to carrying out schemes that defrauded banks and private equity firms of $29 million.
A news release from the U.S. Attorney’s Office of the Middle District of Louisiana says 57-year-old Michael Allen Worley pleaded guilty Monday to bank fraud and wire fraud.
With the guilty plea, Worley has admitted to obtaining $18 million in loans from banks in Baton Rouge and across the country between 2014 and 2018. He also admits to obtaining $11 million from private equity firms in Louisiana and Texas.
U.S. Attorney Brandon Fremin says Worley inflated his assets, understated or omitted his liabilities, misrepresented his income and more to obtain the money.
“This investigation and conviction demonstrates that those who seek to deceive and defraud banks and other lenders for their own personal benefit will be held accountable,” U.S. Attorney Brandon J. Fremin said. “Mr. Worley executed schemes to fraudulently induce banks and private lenders into giving him millions of dollars, and used unwitting associates of his to assist him. Individuals like Mr. Worley who obtain loans through fraudulent means can expect to be prosecuted, and victims of such schemes should know we will do everything within our power to make these lenders whole. I would like to recognize the efforts of our prosecutor and the FBI for their exemplary work on such an important matter.”
At the time of his bankruptcy filing, Worley claimed $107 million in debt, including millions of dollars owed to Natchez-based United Mississippi Bank (UMB).
Worley had led the bank to believe he was financially sound when the bank lent him money against several Natchez properties including teh antebellum mansion known as Dunleith. UMB obtained permission from the bankruptcy court to foreclose on the property and has since been trying to sell it.
Dunleith was built in 1856 and operated as a commercial bed and breakfast facility since 1976. When it closed Dunleith currently had 22 luxury rooms available for overnight guests and has been the venue for many weddings and large parties throughout the years.
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