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 HeadlinesSmart & Final in Roseville to Occupy Wise Buys SpotRoseville, CA -- Smart & Final, a non-membership warehouse grocery store is preparing to open shop at 1159 Roseville Square, which was previously home to Wise Buys.
Roseville City Council Blasted by Police and Firefighters UnionsROSEVILLE, CA - International Association of Fire Fighters Local 1592, International Brotherhood of Electrical Workers Local 1245, International Union of Operating Engineers Local 39, Roseville Police Officers' Association and Roseville Police Association
Child Support Awareness Month in Placer CountyPlacer County Department of Child Support Services is taking its show on the road this month in recognition of Child Support Awareness Month
Roseville Celebrates National Night Out TonightOn Tuesday, August 4, neighborhoods throughout the City of Roseville are invited to join forces with thousands of communities nationwide
California Statewide Fire Summary (8.3.15)California Fire Updates 2015: There are 21 active fires across California, well over 9,000 firefighters battling them
Roseville Police Make Arrest in Parking Lot Robbery CaseRoseville detectives have identified all five people involved in the robbery of a woman in a parking lot last week.
Hyundai Elantra Hatchback: Affordable, stylish, roomyThe 2015 Hyundai Elantra GT hatchback certainly belongs in the discussion when car shoppers are out there searching for that just-right hatchback.
Roseville Gas Prices Drop: Find the Best Deals HereGas prices in Roseville have eased slightly this past week and industry professionals are expecting gas prices to continue a downward push
Blind Attorney Becomes National AdvocateBlind from birth, Chris Danielson is director of public relations for the 50,000-member National Federation of the Blind
Rocklin Crime Report Digest Update (8-1-15)Weekly crime report digest report update from Rocklin PD
California Fires Update Summary (8.1.15)California Fire Updates 2015: Nearly 9,000 firefighters are battling 24 large fires across California
Tahoe Restoration Act of 2015 IntroducedCongressman Tom McClintock (R-CA) and Congressman Mark Amodei (R-NV) introduced legislation to address catastrophic wildfire and invasive species threats
NEWS: In Case You Missed It