Bloomberg News

Connecticut Importer Pleads Guilty Citizens Bank Fraud

May 18, 2012

A Westport, Connecticut owner of an import-export business pleaded guilty to defrauding Citizens Bank NA of almost $7 million by lying to the lender about the company’s financial condition.

Daniel Lyons, 54, pleaded guilty to one count of bank fraud before U.S. Magistrate Judge Donna Martinez in Hartford today, according to statement by David Fein, the U.S. Attorney for Connecticut.

Lyons, the chief executive officer of Greenwich Trading Co., applied in 2007 for a revolving line of credit from Citizens Bank, and subsequently falsified audit reports and other documents while drawing funds, prosecutors said. After reaching the limit of the loan, the company filed for Chapter 7 bankruptcy protection in 2009, according to the statement.

Its accounts receivable at the time of the filing were $380,000, the U.S. said. The previous year he told Citizens Bank he had between $7.3 million and $9.2 million in accounts receivable.

Lyons will be sentenced by U.S. District Judge Robert Chatigny on Aug. 10. He faces a maximum 30-year prison term, the Justice Department said.

The case is U.S. v. Lyons, 12-00115, U.S. District Court, District of Connecticut (New Haven).

To contact the reporter on this story: Don Jeffrey in New York at djeffrey1@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg


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