Former CEO Pleads Guilty to Bank Fraud, Faces up to 30 Years in Prison

Richard Loren Lewis, the former CEO of Blue Wave Media Inc., pleaded guilty to bank fraud and making a false statement to a financial institution. Lewis, 67, of La Quinta, schemes to defraud Silicon Valley Bank by submitting sham financial documents that falsely stated his company's net worth. The scheme, which took place from April 2013 to April 2016, resulted in Lewis obtaining $5 million in loans from the bank by preparing and causing to be prepared false financial documents.

Key Takeaways:

• Richard Loren Lewis, 67, pleaded guilty to two federal charges: bank fraud and making a false statement to a financial institution.
• Lewis, the former CEO of Blue Wave Media Inc., defrauded Silicon Valley Bank by submitting sham financial documents that falsely stated his company's net worth.
• The scheme took place from April 2013 to April 2016, during which Lewis obtained four loans totaling $5 million by falsifying financial documents.
• Lewis's misrepresentations caused the bank to approve the loans and sustain actual losses of approximately $3,414,064.
• The case was investigated by the FBI, and Assistant United States Attorney Robert S. Trisotto is prosecuting the case.
• Lewis faces a statutory maximum sentence of 30 years in federal prison at his scheduled sentencing hearing on July 30.

Statistics:

• $5 million: the total amount of loans obtained by Lewis through his fraudulent scheme.
• $3,414,064: the actual losses sustained by Silicon Valley Bank as a result of Lewis's scheme.
• 4: the number of loans approved by Silicon Valley Bank as a result of Lewis's misrepresentations.
• 2013-2016: the time period during which Lewis's scheme took place.
• 30: the maximum years Lewis could serve in prison if sentenced to the maximum penalty.

Sources:

• United States Attorney's Office for the Central District of California
• FBI
• United States District Judge John W. Holcomb
• Assistant United States Attorney Robert S. Trisotto