Fifth EFI Fraud Defendant Tomberlin To Plead Guilty



John S. Tomberlin, a defendant in the EFI fraud case, will plead guilty on August 15, 2011 before U.S. District Judge Paul S. Diamond in Philadelphia federal court, according to court documents. He was a partner in South Central Agency of Alabama, which is listed as the purported insurer of equipment that secured numerous EFI loans in the indictment.

According to the indictment filed in November 2010, Tomberlin faces 15 counts including one count of conspiracy; eight counts of mail fraud, one count of conspiracy to commit money laundering and five counts of money laundering. The July 1, 2011 filing did not indicate the charges he will admit.

As previously reported on monitordaily, EFI was a logging industry lender that provided financing for the purchase of forestry and land clearing equipment, primarily in the southeastern U.S. According to the indictment, from the time it was acquired by Sterling Financial in March 2002, until April 2007, the value of EFI’s loan portfolio grew on paper from approximately $80 million to approximately $330 million. Sterling was subsequently acquired by PNC Financial in April 2008.

Joseph M. Braas, Michael J. Schlager, Mary C. Stankiewicz, Misty L. Kroesen, Curtis A. Kroesen, all from Lancaster County and John Wiley Spann, Harold W. Young and John S. Tomberlin, all from Alabama were indicted with conspiracy to commit mail fraud and mail fraud, all arising out a massive, sophisticated loan fraud scheme that resulted in a loss of $53 million.

It is alleged in the indictment that as far back as 2001, before EFI was acquired by Sterling, the defendants, which include five former EFI employees, were engaging in a systematic fraud at EFI. From 2001 through 2007, they are charged with colluding in a pervasive scheme to steal money by looting the accounts of EFI and falsifying EFI’s books.

Previously on monitordaily:

Equipment Finance Loan Fraud Defendant Guilty Plea Scheduled, published June 22, 2011

Sentencing of Three Defendants in EFI Loan Fraud Case Postponed

Sentencing of Third Defendant in EFI Loan Fraud Case Postponed

Sentencing of Second Defendant in EFI Loan Fraud Case Postponed

Sentencing of Key Figure in EFI Loan Fraud Case Postponed


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