February 5, 2019

The former chairman and CEO of a pharmaceutical manufacturing company has been convicted of engineering an elaborate fraud on two banks that eventually led one to collapse and the other to suffer $1 million in losses. According to the DOJ, Jack Kachkar of Inyx Inc entered into a series of loan agreements with Westernbank of Puerto Rico—at the time one of the largest banks in Puerto Rico—that were backed by Inyx’s assets, including accounts receivable. He then caused his employees to present tens of millions of dollars of fake invoices and misrepresented the worth of his personal collateral in order to induce $142 million in loans. When the bank finally declared the loans in default two years later, in June 2007, it suffered $100 million in losses, which led directly to its collapse. In a separate scheme, Kachkar deposited a fraudulent $3 million check at Mellon United National Bank of Miami, purportedly from the sale of a private jet (which he’d bought with money diverted from the Westernbank loan). Once the provisional credit cleared, he wired it all out and then refused to reverse the wire, causing the bank to suffer $1 million in losses. He now faces a federal judge for sentencing in April. DOJ; USAO SDFL

Tagged in: Financial and Investment Fraud, Misrepresentations,