According to a report from the Mortgage Bankers' Association, a former chief financial officer at Chase Manhattan Corp. was arrested last week and charged with three counts of filing false and fraudulent loan applications and a single count of bank fraud.
John Wilson, Jr., of Redding, Conn., was reportedly fired April 12 for obtaining $4.36 million in loans from Chase Manhattan, its mortgage unit and another bank to purchase several pieces of property in Connecticut.
Wilson allegedly obtained two loans from Chase Manhattan and Chase Manhattan Mortgage Corporation worth $2.36 million, by falsely claiming to own $1.1 million in outstanding stock from GE Capital Corp., his former employer. The complaint also alleged that Wilson obtained a third loan for $2 million from Webster Financial Corp.'s Webster Bank unit by concealing the Chase Manhattan loans.
Wilson allegedly paid the $1.56 million loan with the Webster loan, while $800,000 from Chase remains unpaid. - AT