Virginia business owner must pay back $4M for fraud scheme
VIRGINIA BEACH, Va. (AP) — A Virginia business owner who spent business loans on personal expenses, including his rock band, will pay more than $4 million in restitution, in addition serving a 10-year federal prison sentence.
The Virginian-Pilot cites a U.S. Department of Justice release that says 58-year-old Edward Zinner was sentenced Thursday in connection with a fraud scheme.
The release says he operated Ocean Equity, a collection of businesses that engaged in credit card processing and merchant cash advances, through which he provided false representation to obtain more than $4.5 million. He also obtained six business loans worth $3 million that he spent on personal expenses, including gambling and his TGZ Band.
When Zinner closed his business in 2016, he still owed $3.9 million to investors.
He pleaded guilty to money laundering in October.
Information from: The Virginian-Pilot, http://pilotonline.com