Ex-Equipment Finance Execs Settle Fraud Suit

Law360, New York (January 6, 2011, 5:24 PM EST) -- Two former Equipment Finance LLC executives agreed Thursday to settle a U.S. Securities and Exchange Commission suit that alleged they conspired to hide $281 million in losses to the company's loan portfolio, following guilty pleas on related criminal charges.

According to a settlement agreement filed in the U.S. District Court for the Eastern District of Pennsylvania, Joseph M. Braas, EFI's former chief operating officer, and Michael J. Schlager created fictitious loans specifically to make monthly payments on delinquent commercial loans handed out by the company. The...
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