Monday, May 10, 2021

Former CEO Of Startup Pleads Guilty To Defrauding Tech Bank

The former CEO of a Southern California communications services company has plead guilty to charges that he fraudulently obtained $5 million in bank loans from one of Southern California's big startup and technology banks. According to the U.S. Attorney for the Central District of California, Richard Loren Lewis, 67, of La Quinta, pleaded guilty to a two-count information charging him with bank fraud and making a false statement to a financial institution. According to the U.S. Attorney's Office, Lewis schemed to defraud Silicon Valley Bank, a Santa Clara-based commercial bank that funds start-up technology companies. Lewis was the CEO of Blue Wave Media. Lewis reportedly prepared false balance sheets and income statements, which falsely overstated, among other things, Blue Wave Media's net worth, liquidity, and revenue, according to prosecuters. Lewis now faces up to 30 years in federal prison.