Westport resident Christopher T. Carr, former president of Waterbury-based F&S Oil Co. Inc., pleaded guilty to one count of bank fraud Tuesday in federal court in Hartford, the U.S. attorney for Connecticut announced.
Appearing before Senior U.S. District Judge Alfred V. Covello, Carr admitted that he defrauded Citizens Bank by overstating the oil company's accounts receivables and inventory in order to get an extension of credit. The oil company held three lines of credit with Citizens Bank.
Federal prosecutors allege that Carr, 55, cost the bank $2.5 million to $7 million. The scheme began to unravel after plans for a construction project failed.
In 2007, the oil company sought to construct a local biodiesel plant. Construction was primarily funded through the company's credit with the bank. However, by early 2008, the project ran into unanticipated construction and permitting problems that delayed completion and significantly increased the cost of construction.
As the biodiesel plant's construction costs mounted, Carr falsified documents to further extend the company's credit with the bank. Carr is scheduled to be sentenced Sept. 7. He faces a maximum prison sentence of 30 years and a fine of up to $9 million.
This case was investigated by the FBI and the Internal Revenue Service.
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