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.
Print This Article
Placer County News HeadlinesRoseville Developer Begins Senior Community in Elk GroveUSA Properties Fund will hold a groundbreaking ceremony for Arbor Creek Senior Apartments at 10:30 a.m., Aug. 4, at the project site located at Elk Grove-Florin and Calvine roads
Rep. Tom McClintock Announces August Town Hall MeetingsRoseville, CA -- U.S. Rep. Tom McClintock (CA-04) has announced a series of town hall meetings in August.
Lincoln Man Serving Aboard the Navy's USS SomersetPetty Officer 1st Class Brian West, an aviation boatswain's mate from Lincoln, Calif. and 2003 graduate of Lincoln High School, is serving in the U.S. Navy aboard USS Somerset
California Would Create More Jobs Without Prop 30In his recent piece for The Sacramento Bee, "State's job growth defies predictions after tax increases," David Cay Johnston argues that California's recent job creation numbers prove
Sacramento County Opposes Bay Delta Conservation PlanThis week the Sacramento County Board of Supervisors formally submitted comments challenging the findings of the Bay Delta Conservation Plan (BDCP) state environmental
Roseville to Host Senior Softball Western National ChampionshipsRoseville will play host this August to the Senior Softball Western National Championships
Roseville Crime Report Digest Update (7.29.14)Roseville, CA - The Roseville Police Department weekly crime report digest update for July 29, 2014.
Different Standards From Mortgage LendersJulie Jalone of MagnumOne Realty in Roseville, reports on a recent Fannie Mae survey which indicates there may be a growing difference in credit standards between small and large lenders. Which do you think has the tighter credit standards? Check out Julie's article and find out.
PCWA Comments on Bay Delta Conservation PlanDrought Watch: PCWA expresses concern about future water supply reliability for Placer County and claims EIR fails to consider key issues.
Honor Bowl Games at Del Oro August 2014ROCKLIN, CA. - William Jessup University announced today that it will serve as a sponsor for the Northern and Southern California 2014 Honor Bowl football games.
Tahoe Bike Classic Sept. 27 & 28The inaugural Tahoe Bike Classic will take over the Lake Tahoe basin this fall, September 27 & 28, 2014.
Lake Tahoe Marathon Returns September 14thArguably the most beautiful marathon in the world, the Lake Tahoe Marathon returns to Lake Tahoe on Sunday September 14, 2014. Since its inception in 1995, the Lake Tahoe Marathon has evolved into a premier running event