Granite Bay Man Arrested in $6.8 Million Bank Fraud
Roseville, CA -- Michael T. Sahlbach, 60, of Granite Bay, was recently arrested on six counts of bank and wire fraud, United States Attorney Benjamin B. Wagner announced. A federal grand jury returned a sealed indictment; it was unsealed following his arrest.
According to court documents, Sahlbach owned and operated a debt collection business, National Credit Acceptance, Inc., that purchases pools of consumer debts from other companies at a discount, and then attempts to collect on these debts from the consumer. In order to purchase the debt pools, Sahlbach opened a $25 million line of credit with First Bank to help support his business. The credit agreement required that if NCA wanted to buy a debt pool, it would provide 15 percent of the cost of that pool and 85 percent would be financed by First Bank.
According to the indictment, on several occasions from September to December 2008, Sahlbach represented to First Bank that he had contracted with Lender Exchange to purchase debt pools. As a result of those representations, First Bank wired a total of $6.8 million to Lender Exchange. Sahlbach had not told First Bank that he actually controlled Lender Exchange. In fact, in August 2008, he had registered it with the California Secretary of State using the alias M. Hansen and used the address of a parking garage on Capitol Mall. If First Bank had known Sahlbach controlled Lender Exchange, it would not have extended credit.
The indictment alleges that Sahbach did not use the money to purchase debt pools from Lender Exchange, but transferred the funds to other bank accounts he controlled. He used those funds for business expenses and to provide the 15 percent contribution to receive additional funds from First Bank. Shortly after obtaining the final disbursement from First Bank, Sahlbach defaulted on the entire line of credit with First Bank.
Sahlbach is scheduled to make his initial appearance today at 2:00 p.m. before a United States Magistrate Judge.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Jared C. Dolan is prosecuting the case.
If convicted, Sahlbach faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Pet Care | Real Estate | Restaurants | Tech | View All | * Add/Upgrade Business
Placer County News HeadlinesRaley's Ditching Sodas Deemed UnhealthyRoseville, CA- Raley's Family of Fine Stores has announced its decision to eliminate certain Raley's private label brand soda to advance their vision of health and wellness.
Downtown Roseville Partnership and Local Homeless Shelter AllianceRoseville, CA- The Downtown Roseville Partnership (DRP), in conjunction with The Gathering Inn (TGI), have launched a day porter program within the District.
Stand Up Placer gets helping hand from U.S. BankRoseville, CA, - Stand Up Placer today received a generous grant award of $10,000 and a sponsorship award of $2,500 from U.S. Bank
Community Choice Energy Program Gets Preliminary Financing ApprovalThe Placer County Board of Supervisors recently approved a preliminary financing plan and introduced an ordinance for the development of Community Choice Energy
The Manipulation of our FoodsWith obesity rates on the rise, synthetic ingredients, addictive additives, toxic packaging, hormone-disrupting chemicals, contaminants, and dyes are
Ford Focus continues to offer great valueRoseville, CA- Although this may not be the most identifiable car in the Ford stable of vehicles, the Focus has given the venerable American automaker plenty of notoriety
Gas Prices Steady Heading Into Summer Travel MonthsRoseville, CA- Gas prices in Roseville are holding steady again heading into the busy summer travel months
California Fires Update Summary (6.27.16)Over 5,200 firefighters are battling 9 large wildfires in California. Yesterday's high temperatures combined with the low humidity led to an increase in wildfire conditions
Keep Your Pets Safe in the Hot Summer MonthsRoseville, CA - Summertime means fun in the sun, especially with your furry, four-legged friends. Unfortunately, the warmer weather
Roseville Weekly Crime Report Digest (6.26.16)Weekly Roseville crime report digest update for the period covering 17-24, 2016.
$18 Million in Contracts to Assist Placer County's Most VulnerableThe Placer County Board of Supervisors on Tuesday approved nine different contract agreements totaling more than $18 million to provide mental health, substance abuse, transitional housing and child abuse prevention services
Special Needs Dog Looking for a Special HomeRoseville, CA - Bentley, a five year old Dachshund/Wire Haired Terrier, arrived at the Placer SPCA in May without use of his hind legs
NEWS: In Case You Missed It