The money, however, was not held but instead taken by the conspirators and no client ever received a promised loan, said the grand jury.
“As a result of this scheme to defraud, the defendants and their co-conspirators obtained at least $6,478,795 in funds to which they were not entitled,” alleges the indictment.
One client, identified only as “Client 1,” was a church in Williamsburg. In December 2016 a bishop of the church deposited $90,000 in escrow hoping for a $900,000 credit line. The bishop was assured by an employee that the $90,000 would be protected by an insurance policy.
When the church had not received its line of credit by June 2017, the bishop demanded the $90,000 back. The bishop got the $90,000 back but it was money obtained by the conspirators from other victims, according to the indictment.
Two others alleged victims, an unidentified Chesterfield County construction business and another church, were not so fortunate. In May 2017 the business paid an advance fee of $100,000 for a $1 million credit line and entered into a similar arrangement with the conspirators for an unidentified church that paid $150,000 for a $1.5 million credit line.
Those funds were used to refund the deposits of other frustrated clients and for C&D Corporate Services and Creative Capital Partners to cover payroll and other expenses.