Thursday, September 22, 2011

Entrepreneur gets 12 years for fraud: Ohio man claimed to run as many as 20 small businesses, including a charter air service, but admitted in federal court that he devised a fraud scheme to keep them afloat.

Cincinnati entrepreneur Richard T. Brunsman spent much of the $62 million he cheated out of banks on an extravagant lifestyle, according to federal authorities.

And he’ll spend 12 years in prison for it, Chief U.S. District Judge Susan Dlott decided Thursday.

The 45-year-old Green Township man claimed to run as many as 20 small businesses, including a charter air service and several technology start-ups, but admitted in federal court in January that he devised a fraud scheme to keep them afloat.

Brunsman applied for the loans between 2004 and 2010 to pay off other loans he owed, creating false documents including bogus financial statements to obtain the loans.

As part of his sentence, Brunsman must pay back roughly $49 million to 18 banks he cheated.

Brunsman’s bank records show he enjoyed entertaining and spent the money on a home in Cincinnati, a waterfront condo in Florida and a large yacht, according to the federal investigation, which also revealed numerous trips, including some to California and Las Vegas.

“In the end, (Brunsman) left an unparalleled trail of devastation through the Cincinnati banking community,” Assistant U.S. Attorney Timothy Mangan wrote in a sentencing memorandum filed with the court.

Brunsman’s sentence also demands he forfeit all assets he purchased with fraudulent funds. He is ordered to report to prison Nov. 28.

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