Hanover businessman accused of $150K scam
Matthew Norris, 34, of Hanover, pleaded not guilty to bank fraud and money laundering charges and was released on bail pending trial.
A Hanover man will face bank fraud and money laundering charges in November following a federal grand jury indictment, according to a Friday news release from the United States Attorney's Office for the Middle District of Pennsylvania.
Matthew Norris, 34, of Hanover, pleaded not guilty to the charges and was released on bail pending trial.
The indictment alleged Matthew Norris, 34, of Hanover, devised and executed a money laundering scheme through his business, Norris Enterprises, or Aerus Electrolux, Hanover, according to the news release. United States Chief Magistrate Judge Martin Carlson unsealed the indictment on Friday.
In 2011, Norris allegedly began applying for lines of credit to GE Bank for customers without their knowledge or consent, defrauding the bank out of $157,000, according to the news release.
The indictment reported that Norris inflated the customers' income on the applications and used the credit to purchase Electrolux products. The fraudulent sales were reimbursed by GE Bank and deposited into Norris' business account.
The net loss to the bank was about $150,000, according to the news release.
The alleged scam was discovered in October 2011 when Norris' business was audited, according to the news release. GE Bank responded by crediting the customers with owed fees.
Norris' business was an authorized independent franchisee of Electrolux International and located on York Street in Hanover.
Based on Norris' charges, he could face up to 30 years imprisonment and a $1 million fine, according to the news release. His trial, before U.S. District Court Judge Sylvia Rambo, is slated for Nov. 14.