Handcuff (File)

Three Pennsylvania Men Charged With Corporate Fraud Offenses

Handcuff (File)
Handcuff (File)

Three former executives of Tammac Holdings Corp. are facing charges related to a multi-year corporate fraud scheme, according to the U.S. Attorney’s Office for the Middle District of Pennsylvania.

Jeffrey Poth (68), James Mahon IV (64), and Joel Gillick (56) were indicted by a federal grand jury on charges stemming from their alleged activities between 2008 and September 2021.

Poth served as Tammac’s President, while Mahon and Gillick held the positions of Vice President and Compliance Officer, respectively.

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The indictment accuses the trio of conspiring to commit bank, wire, and mail fraud in connection with the sale and servicing of loan portfolios. Prosecutors allege that the defendants manipulated financial records to conceal delinquency rates and repossession losses within these portfolios, making them appear more attractive to potential investors.

“The deceptive practices alleged in this case undermine the integrity of our financial markets,” said U.S. Attorney Gerard M. Karam. “We are committed to holding accountable those who engage in such fraudulent schemes.”

According to court documents, the defendants allegedly achieved this by using Tammac’s own funds to make fake loan payments, artificially inflating the value of the portfolios. This enabled Tammac to sell these assets to financial institutions and investors at a premium.

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The charges against Poth and Gillick include conspiracy to commit bank and wire fraud, with Poth facing additional counts of bank fraud and wire fraud. Mahon is charged solely with conspiracy.

If convicted, each defendant faces a significant prison sentence and potential financial penalties. Poth and Gillick could face maximum sentences exceeding 20 years, while Mahon could receive up to five years behind bars.

The investigation is ongoing, and no further details have been released regarding potential trials or settlements.

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