Hanover man indicted on bank fraud, laundering charges
A Hanover man was indicted Wednesday by a federal grand jury in Harrisburg on bank-fraud and money-laundering charges, according to a news release from the U.S. Attorney's Office.
Matthew S. Norris, 34, owner and operator of Nortech Enterprises, doing business as Aerus Electrolux, is accused of devising and executing a scheme defrauding GE Bank out of about $157,000, according to the indictment. The scheme is alleged to have started in 2011.
According to the release, Norris allegedly submitted about 27 credit applications under the names of his customers to GE Bank without their consent.
"By inflating the customers' income on electronic credit applications, Norris succeeded in obtaining lines of credit for the customers to purchase Electrolux products," the release states.
After that, Norris charged the approved accounts for fictional sales and GE Bank deposited the loan proceeds into Norris' business account, according to the release. Norris allegedly listed the applicants' addresses as his business, 1125 York St., Hanover, so that the bank would mail the credit cards and monthly statements to him, according to the indictment.
He would make payments on behalf of the customers without their knowledge, according to the release. The alleged scheme was discovered in October 2011 when an Electrolux executive did an onsite audit of Norris' business. When GE bank learned of it, the amounts owed by the customers were immediately credited back, costing the bank $150,000, according to the release.
Norris pleaded not guilty and was released on bail. His trial is set for Nov. 14 before District Court Judge Sylvia H. Rambo.
The release states that the maximum penalty under federal law is 30 years in prison followed by supervised release and a $1 million fine.
— Reach Christopher Dornblaser at firstname.lastname@example.org or on Twitter at@YDDornblaser.