Wednesday, November 19, 2014
DECA Financial Services Executive Faces Federal Fraud Charges
Wolfe is accused of filing false financial statements with BMO Harris bank in order to obtain an inflated line of credit from $1 million to $7.5 million, which he allegedly tapped for personal use. Wolfe is accused of using some of the money to make payments on his house, an automobile, personal credit card accounts and a lake house.
In June 2013, Wolfe allegedly sold $1 million worth of stock to an unnamed individual for a 5% stake in DECA, which he failed to provide to the stock purchaser. Wolfe allegedly used some of the money to purchase an Audi automobile for himself. Creditors forced Wolfe into personal bankruptcy earlier this year. The U.S. Attorney claims Wolfe's attorney represented to the bankruptcy court Wolfe had access to a $14 million living trust to help repay creditors. The actual value of the trust was $52,000, a misrepresentation the U.S. Attorney says delayed the appointment of an independent trustee to oversee DECA.
Wolfe could face up to a decade in prison and be liable for significant fines if found guilty of the charges. The U.S. Attorney's Office says the indictments against Wolfe were aided by a joint investigation of the FBI and the U.S. Bankruptcy Trustee.