NEW YORK—A man who posed as the chief compliance officer of a purported Manhattan financial institution has admitted his role in a years-long fraud scheme that bilked victims out of more than $4 million by promising financing that never existed, according to Bloomberg and a release from the U.S. Attorney’s Office.
Gerald Shaw, a disbarred California lawyer, has pleaded guilty in Manhattan federal court to participating in an advance-fee scam tied to “Dominion Bank and Trust Co.,” which prosecutors say was a sham despite claiming an address in the city’s financial district. Shaw and others represented that the bank could secure loans, guarantees, or letters of credit for clients in exchange for large upfront payments, Bloomberg reported.
From 2016 through 2020, Shaw served as Dominion’s purported chief compliance officer and helped draft and issue financial instruments, including standby letters of credit, that prosecutors say were unsupported by any assets. Court filings allege Shaw knew the bank lacked funds but continued to assist in issuing instruments valued as high as $25 million and $50 million, while representing that Dominion could stand behind them.
Federal prosecutors said at least 60 victims—many of them small businesses—wired large “deposit” or “servicing” fees and rarely recovered their money. In some cases, victims were asked to make additional payments when they sought refunds. Authorities said the scheme relied on false assurances of legitimacy and financing capacity, prompting a joint investigation by federal prosecutors, the FBI, and Homeland Security Investigations.
Section: Standard
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Copyright Holder: CUToday.info
Copyright Year: 2025
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URL: https://www.cutoday.info/Fresh-Today/Fake-Bank-Real-Losses-Ex-Lawyer-Pleads-Guilty-In-4M-Manhattan-Fraud-Scheme