Posted at: 04/07/2014 11:50 AM
A father and son from Pittsford have been convicted by a federal jury on charges of conspiracy to commit bank fraud, loan fraud and bank fraud.
The U.S. Attorney’s Office tells News10NBC that between 2002 and November 2007 Michael and Richard Kaufman directed the Controller of American Industrial Sales to give false financial statements to Key Bank and to the company’s outside accounting firm. Investigators say that false information overvalued the accounts that Key Bank based its $2-million loan on. We are told the loan instead was used to buy expensive homes and country club memberships. As a result, investigators say Key Bank suffered a $1.5-million loss.
Both face a maximum of 30 years in prison, a fine of $1,000,000 or both when sentenced on July 16.