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Plano man sentenced to eight years for fraud
From Staff Reports
PLANO -- A Plano man will spend the next eight years in prison after pleading guilty to wire fraud, according to a release from the U.S. Department of Justice.
Edward Louis Molz III, aka "Frank Sullivan," 29, of Plano, has been sentenced for committing wire fraud in connection with a fraudulent advance-fee scam he ran. He must also pay $1 million in restitution.
In addition, according to the plea agreement, Molz will be ordered to forfeit property that was derived from proceeds traceable to his offense, including funds seized on Sept. 7, 2010, from the 3rd Street Financial LLC account at JPMorgan Chase, as well as a 2007 BMW 650, a 2005 Maserati and real estate located on Cartwright Street in Irving.
According to the factual resume filed in the case, from November 2009 through May 2010, Molz ran a scheme in which he induced small business owners, who were seeking alternative means of financing, to pay a fee to purchase "aged" corporations. These "aged" corporations purportedly had access to lines of credit that were available to the purchaser.
To carry out his scheme, Molz established 3rd Street Financial LLC, and, using the assumed name of "Frank Sullivan," held himself out as its chief financial officer. He marketed 3rd Street Financial through a website and a loose association of financial brokers. He represented to potential purchasers that he had established and maintained a number of "aged" corporations which had been in existence for four to five years and had access to lines of credit of between $250,000 and $400,000. For a $3,250 acquisition fee, a purchaser could acquire a "Tier 1" corporation with a minimum line of credit of $150,000. However, for a $6,500 acquisition fee, a purchaser could acquire a "Tier 2" corporation with a $250,000 minimum line of credit.
Molz represented that upon payment of the fees, he could deliver the aged corporation to a purchaser within nine to 12 weeks. He also represented that each "aged" corporation had additional benefits, including established "business trade lines," a complete financial and business plan, a Dun & Bradstreet listing and three years of valid tax returns. He furnished potential purchasers with false and fictitious documents, including service agreements, testimonials from satisfied purchasers and letters from financial institutions confirming the issuance of lines of credit.
During the time frame mentioned above, approximately 247 individuals mailed or wired money to Molz, and he deposited those funds into JPMorgan Chase and Compass Bank accounts. Molz did not deliver any "aged" corporations as promised. Instead, he used the money almost exclusively for his personal benefit, including the acquisition of personal assets and real estate.
The following are comments from the readers.
In no way do they represent the view of Starlocalnews.com
In no way do they represent the view of Starlocalnews.com
melindacook wrote on Jul 15, 2011 3:13 PM:
" I'm impressed by his intelligence..too bad he couldn't have put it to better use. "
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