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ZOLTON PHILLIPS PLEADS GUILTY TO DEFRAUDING AMERICAN BANK FOR SAVINGS

 ZOLTON PHILLIPS PLEADS GUILTY TO DEFRAUDING
 AMERICAN BANK FOR SAVINGS
 BOSTON, Feb. 24, /PRNewswire/ -- A California man, formerly of Boston, pleaded guilty today to bank fraud in connection with a scheme to obtain loans from the now-defunct First American Bank for Savings.
 U.S. Attorney Wayne A. Budd announced that Zolton A. Phillips, 49, of Oroville, Calif., formerly of Boston, pleaded guilty today to one count of bank fraud in connection with a scheme to obtain over $8 million in loans from the First American Bank for Savings. First American has since been taken over by the Federal Deposit Insurance Corporation. A prosecutor told the court that if the case had proceeded to trial, the government would have presented evidence that Phillips obtained the loans by falsely telling First American that he had never previously filed for bankruptcy, when in fact he had filed for bankruptcy twice before within the preceding 10 years. In addition, Phillips submitted a personal financial statement using a false social security number and submitted a personal tax return which he had not filed with the Internal Revenue Service. Phillips pleaded guilty to one count of having executed the scheme by obtaining a $5 million loan from First American in August 1987, to purchase a mini-sto rage facility in Fitchburg, Mass.
 U.S. District Judge Douglas P. Woodlock scheduled sentencing for April 28. Phillips faces a maximum penalty of five years imprisonment and a $250,000 fine.
 This case was referred to the U.S. Attorney's Office by the Boston Office of the U.S. Trustee, was investigated by special agents of the Federal Bureau of Investigation and prosecuted by Special Assistant U.S. Attorney Mark J. Balthazard of Budd's Economic Crimes Division and the U.S. Trustee's Office.
 -0- 2/24/92
 /CONTACT: Press Officer, U.S. Attorney's Office, 617-223-9445/


EG -- NE015 -- 2087 02/24/92 17:26 EST
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Publication:PR Newswire
Date:Feb 24, 1992
Words:314
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