Hanover man to serve 3 years in prison for bank fraud, money laundering
HARRISBURG – A Hanover man was sentenced to three years in prison by U.S. District Court Judge Sylvia H. Rambo for bank fraud and money laundering charges.
Matthew S. Norris, 34, was also ordered to pay $148,852 in restitution.
According to United States Attorney Bruce D. Brandler, Norris devised and executed a bank fraud scheme in 2011 that defrauded GE Bank out of $157,785.
In 2011, Norris was the owner of Aerus Electrolux, an authorized independent franchisee of Electrolux International, which was then located at 1125 York Street, in Hanover, PA. Norris executed the scheme by submitting credit applications under the names and personal identifiers of 25 of his customers to GE Bank without his customers’ knowledge or consent. By inflating their income on the electronic credit applications, Norris succeeded in obtaining lines of credit for his customers to purchase Electrolux products. Norris would then charge the accounts for fictional merchandise and, as a result, GE Bank would deposit the loan proceeds into his business account.
When the customers’ monthly credit card payments became due, Norris would make payments on their behalf without their knowledge from the proceeds of the scam. Monthly statements were never sent to the customers because, Norris listed his business address as their home address on their electronic credit applications.
The scheme was discovered in October of 2011, when an Electrolux executive became suspicious of Norris’ unusual sales transactions and initiated an onsite audit.
When GE Bank learned what Norris had done, they immediately credited all amounts owed by the unwitting customers.
Rambo also ordered Norris to serve three years of supervised release following his release from prison and ordered him to forfeit the sum of $157,782 to the United States.
The case was investigated by the Harrisburg offices of the IRS Criminal Investigation Division and the U.S. Postal Inspection Service. The case was prosecuted by AUSA Kim Douglas Daniel.