Fifth Employee in Cash Flow Partners Bank Fraud Conspiracy Admits Role in Multi-Million Dollar Loan Scheme | USAO-NJ


NEWARK, NJ – A New York man today admitted to participating in a scheme involving the creation of false documents to secure more than $ 4 million in bank loans, Acting Prosecutor Rachael A. Honig said.

Cesar Mendez, 49, of New York City, pleaded guilty by video conference before U.S. District Judge Kevin McNulty to a report accusing him of conspiracy to commit bank fraud.

According to the documents filed in this case and the statements made in court:

Between March 2016 and September 2019, Cash Flow Partners LLC, a business consultancy firm with offices in New York and New Jersey, posted internet advertisements and held seminars offering to help clients obtain loans. banks, including loans insured by the Federal Deposit Insurance Corporation (FDIC). When clients submitted documents to support their bank loan applications to Cash Flow Partners, Mendez and others created fake documents to make client loan applications appear more financially viable than they were. were not in reality. The victim banks suffered losses of more than $ 4 million.

Four of Mendez’s conspirators, Edward Espinal, Gladys Collins, Jennie Frias and Raymundo Torres, have already pleaded guilty to charges related to their role in the Cash Flow bank fraud conspiracy and are awaiting sentencing.

The conspiracy to commit bank fraud charge carries a potential maximum sentence of 30 years in prison and a fine of $ 1 million. Sentencing is scheduled for November 1, 2021.

People who think they have information about this matter can contact the FBI at 1-800-CALL-FBI (225-5324).

Acting U.S. Attorney Honig credited the special agents of the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of special agent in charge Patricia Tarasca in New York, and the special agents of the FBI, under the direction from Special Agent to Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.

The government is represented by Assistant US Prosecutors Ari B. Fontecchio of the Special Prosecutions Division of the US Attorney’s Office and J. Stephen Ferketic of the Healthcare Fraud Unit in Newark.

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