LOAN FRAUD DETROIT (AP) (wgvu) - FEDERAL PROSECUTORS HAVE CHARGED 19 DETROIT-AREA RESIDENTS WHO ALLEGEDLY DEFRAUDED THE SMALL BUSINESS ADMINISTRATION OF $77 MILLION DOLLARS IN LOANS.
U-S ATTORNEY STEPHEN MURPHY ANNOUNCED THE UNSEALING OF INDICTMENTS AGAINST PATRICK HARRINGTON, DEBORAH LAZENBY, ABDUL
WAHEED KHAN, FIKRI MAMDOUH AND KHALED MANASSRA. HE SAYS THE LOANS OBTAINED WERE PRIMARILY TO BUY GAS STATIONS.
HARRINGTON IS CHARGED WITH MISSTATING THE APPLICANTS' FINANCIAL QUALIFICATIONS AND WITH FALSIFYING THE AMOUNT OF MONEY THEY CONTRIBUTED TOWARD THE BUSINESSES.
THE INDICTMENT SAYS THE BORROWERS' PAYMENT DEFAULTS HAVE COST TAXPAYERS MORE THAN $28 MILLION DOLLARS.
FOURTEEN BORROWERS WERE ALSO CHARGED IN CRIMINAL COMPLAINTS.
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