Maryland Man Sentenced to 2 Years in Prison for $1.6 Million Identity Theft, Bank Fraud Scheme

From the U.S. Attorney’s Office, District of Maryland:

Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Stewart Mark Twayne Harris, age 39, of Silver Spring, Maryland, today to two years in prison followed by five years of supervised release for bank fraud, money laundering and aggravated identity theft. Judge Motz also entered an order that Harris pay restitution of $1,666,700, and forfeit residential property located in Brandywine, Maryland.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.

According to his plea, in April 2009, Harris applied for a $1,666,700 loan from a commercial lender for the purported purpose of using loan proceeds to purchase a commercial glass company.  The loan was to be guaranteed by the Small Business Administration (SBA).  To secure the business loan, Harris submitted a loan application and purported tax returns in which he falsely represented the Social Security number of another individual to be his own.  He also submitted false bank statements in which he used the stolen identity of a second victim, and an equity statement which falsely represented the amount of paid receipts and other cash injection into the business he was to purchase.

Based on this false documentation, the SBA and the lender approved the loan, with the SBA guaranteeing 89.99% of the loan amount.  On June 26, 2009, the lender disbursed $1,591,666 to Harris. From June to October, 2009, in order to conceal the loan proceeds, Harris deposited and withdrew the proceeds into different bank accounts he controlled.  On October 1, 2009, Harris withdrew part of the funds to make a deposit and down payment on the purchase of a home in Brandywine, Maryland.

Harris defaulted on the loan on January 5, 2011.  SBA paid the lender approximately $1,515,918.90 in satisfaction of its loan guarantee.

In April 2012, Harris filed a voluntary petition for bankruptcy.  In his petition to the bankruptcy court, Harris failed to declare the commercial lender as a creditor, and failed to disclose that he was an officer or director, and owner of five percent or more, of the glass company.

The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.

United States Attorney Rod J. Rosenstein commended the SBA-OIG and SSA–OIG for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.

Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Stewart Mark Twayne Harris, age 39, of Silver Spring, Maryland, today to two years in prison followed by five years of supervised release for bank fraud, money laundering and aggravated identity theft. Judge Motz also entered an order that Harris pay restitution of $1,666,700, and forfeit residential property located in Brandywine, Maryland.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.

According to his plea, in April 2009, Harris applied for a $1,666,700 loan from a commercial lender for the purported purpose of using loan proceeds to purchase a commercial glass company.  The loan was to be guaranteed by the Small Business Administration (SBA).  To secure the business loan, Harris submitted a loan application and purported tax returns in which he falsely represented the Social Security number of another individual to be his own.  He also submitted false bank statements in which he used the stolen identity of a second victim, and an equity statement which falsely represented the amount of paid receipts and other cash injection into the business he was to purchase.

Based on this false documentation, the SBA and the lender approved the loan, with the SBA guaranteeing 89.99% of the loan amount.  On June 26, 2009, the lender disbursed $1,591,666 to Harris. From June to October, 2009, in order to conceal the loan proceeds, Harris deposited and withdrew the proceeds into different bank accounts he controlled.  On October 1, 2009, Harris withdrew part of the funds to make a deposit and down payment on the purchase of a home in Brandywine, Maryland.

Harris defaulted on the loan on January 5, 2011.  SBA paid the lender approximately $1,515,918.90 in satisfaction of its loan guarantee.

In April 2012, Harris filed a voluntary petition for bankruptcy.  In his petition to the bankruptcy court, Harris failed to declare the commercial lender as a creditor, and failed to disclose that he was an officer or director, and owner of five percent or more, of the glass company.

The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.

United States Attorney Rod J. Rosenstein commended the SBA-OIG and SSA–OIG for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.