Five Face Federal Conspiracy, Wire Fraud Charges
July 28, 2016 at 4:25 p.m.
SOUTH BEND - Five Kosciusko County residents were indicted by a grand jury on 18 counts in South Bend Aug. 11, according to the U.S. Attorney General's office.
Indicted were Fred J. Hagar, 51; Linda D. Hagar, 52; and Valerie M. Chupp, 28, all of Syracuse; Margaret L. Stump, 25, Milford; and Woodrow S. Hagar, 23, Warsaw.
Each individual was charged with one count of conspiracy, which carries a five-year prison term and/or a $250,000 fine. All five also are charged with 11 counts of wire fraud and six counts of bank fraud. The wire fraud and the conspiracy charges carry the same penalty. The bank fraud carries a 30-year term and/or a $1 million fine on each count.
From April 1997 to October 1999, the indictment alleges that the five conspired to commit a wire and bank fraud scheme. The scheme involved obtaining fraudulent loans from various commercial lending companies and financial institutions.
During the time the five operated several businesses, including Paramount Homes and Turkey Run Estates. Also alleged by the indictment is that the wire fraud scheme involved obtaining personal and financial information from customers and using that information to obtain the loans.
Total alleged losses are estimated at $2.1 million.
The group is scheduled to appear before a U.S. magistrate in South Bend within the next two weeks.
The investigation that led to the charges being filed was handled by the Indiana State Police, Federal Bureau of Investigation and Elkhart County Sheriff's Department. [[In-content Ad]]
SOUTH BEND - Five Kosciusko County residents were indicted by a grand jury on 18 counts in South Bend Aug. 11, according to the U.S. Attorney General's office.
Indicted were Fred J. Hagar, 51; Linda D. Hagar, 52; and Valerie M. Chupp, 28, all of Syracuse; Margaret L. Stump, 25, Milford; and Woodrow S. Hagar, 23, Warsaw.
Each individual was charged with one count of conspiracy, which carries a five-year prison term and/or a $250,000 fine. All five also are charged with 11 counts of wire fraud and six counts of bank fraud. The wire fraud and the conspiracy charges carry the same penalty. The bank fraud carries a 30-year term and/or a $1 million fine on each count.
From April 1997 to October 1999, the indictment alleges that the five conspired to commit a wire and bank fraud scheme. The scheme involved obtaining fraudulent loans from various commercial lending companies and financial institutions.
During the time the five operated several businesses, including Paramount Homes and Turkey Run Estates. Also alleged by the indictment is that the wire fraud scheme involved obtaining personal and financial information from customers and using that information to obtain the loans.
Total alleged losses are estimated at $2.1 million.
The group is scheduled to appear before a U.S. magistrate in South Bend within the next two weeks.
The investigation that led to the charges being filed was handled by the Indiana State Police, Federal Bureau of Investigation and Elkhart County Sheriff's Department. [[In-content Ad]]