Former Chase Vice President Arrested
NEW YORK (AP) _ A former vice president and chief financial officer of the Credit Card Division of Chase USA was arrested Thursday at his Connecticut home on charges that he submitted false documents to obtain $4.3 million in loans.
John F. Wilson was fired by Chase USA, a subsidiary of Chase Manhattan Corp., after Chase officials discovered that he had allegedly provided false information on his loan documents, prosecutors said in a release.
Wilson was charged with three counts of filing a false loan application and one count of bank fraud in the scheme, which allegedly occurred in 1998.
Prosecutors accused Wilson of obtaining two loans worth $2.36 million from Chase Manhattan Bank and Chase Manhattan Mortgage Co. by falsely claiming ownership of about $1.1 million in stock options from his previous employer, General Electric Capital Corp.
Wilson left GE Capital in June 1996 to move to Chase and did not possess any stock options at the time he submitted the loan applications in 1998, prosecutors said. He was fired by Chase last month after the bank discovered what it said was false and fraudulent information in his loan application.
A criminal complaint alleged that Wilson obtained a $1.56 million loan from Chase Manhattan Mortgage to buy a $2.4 million property in Ridgefield, Conn.
The complaint, filed in U.S. District Court in Manhattan, also alleged that he obtained a third loan worth $2 million from Webster Bank in Cheshire, Conn., by falsely concealing that he had an outstanding loan from Chase Manhattan Bank.
If convicted, Wilson faces a maximum sentence on each of the four counts of 30 years in prison and a $250,000 fine.