Hanibal Tayeh, 63, pleaded guilty to charges related to a scheme to obtain bank loans and financing for projects in Saudi Arabia.
SPRINGFIELD, Mass. — A Thomaston man pleaded guilty Monday in federal court in Springfield, Massachusetts, to nine counts of fraud and money laundering, the Massachusetts District Attorney’s Office announced Tuesday.
Hanibal Tayeh, 63, pleaded guilty to charges related to a scheme to obtain bank loans and financing for projects in Saudi Arabia.
Specifically, prosecutors said he pleaded guilty to two counts of bank fraud, four counts of wire fraud, three counts of money laundering, and one count of false bankruptcy declaration. Taiyeh was originally indicted and arrested in July 2018 and is scheduled to be sentenced on December 19.
Prosecutors said Taiyeh used false documents and misrepresentations to obtain a $9.1 million loan package from banks in 2013 and 2014 and then received $400,000 in credit extensions.
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The statement said some of the false documents and misrepresentations stemmed from businesses that Tayeh claimed to be pursuing in Saudi Arabia. Prosecutors also said Tayeh made false representations in connection with a construction project he claimed to be planning in Saudi Arabia and defrauded another individual financially.
Prosecutors said Taiyeh laundered the proceeds from the fraud scheme by paying third parties for personal debts, and falsely represented during bankruptcy proceedings that he did not know he had created false letters of credit.
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According to the announcement, the maximum sentence for bank fee fraud is 30 years in prison, five years probation and a $1 million fine, the maximum sentence for wire fraud is 20 years in prison, three years probation and a $250,000 fine, and the maximum sentence for money laundering is 10 years in prison, three years probation and a $250,000 fine.
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Additionally, prosecutors said that for the false bankruptcy declaration charge, Taiyeh faces up to five years in prison, followed by three years of probation, and a $250,000 fine. The sentence will be imposed by a federal district court judge under the U.S. Sentencing Guidelines and statutes, the release said.
Dalton Zbierski is a digital content producer and writer for FOX61 News. He can be reached at dzbierski@FOX61.com.
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