NEW YORK – The 60-year-old  CEO of a Manhattan-based company that designed, imported and sold luggage and other bags was arrested today for making false statements to a bank to get millions in loans, according to the U.S. Justice Department.

Marvin Jemal, the former Chief Executive Officer , was arrested today at John F. Kennedy International Airport in New York, said authorities.

Another CEO with the company, Mark Bernstein, was arrested in August.  He pleaded guilty in October for his role in the scheme.

In total, the Company obtained approximately $6.9 million in loans from the Bank and defaulted on approximately $6 million of those loans from 2007 to October 2009, the FBI said.

Manhattan U.S. Attorney Preet Bharara said Jemal used the millions of dollars for his personal use, including mortgage payments and to buy a Porsche.

FBI Assistant Director-in-Charge George Venizelos said Jamel thought he could “beat the bank” with lies and misrepresentations to support a lavish lifestyle.

“Bank fraud is a serious crime that weakens the economic integrity of our financial institutions. The defendant’s arrest today should send a clear message to the public that bank fraud cases such as this one are, and will continue to be, a high priority for the FBI,” said Venizelos.

Jemal, of Brooklyn, New York, is charged with one count of conspiracy to commit bank fraud, one count of bank fraud, and one count of making a false statement to influence bank action, each of which carries a maximum sentence of 30 years in prison, and one count of money laundering, said officials.

He is facing up to 20 years in prison, prosecutors said.

According to officials, Bernstein, 63, of Belle Harbor, New York, pleaded guilty to one count of conspiracy to commit bank fraud, one count of bank fraud, and one count of making a false statement to influence bank action, each of which carries a maximum sentence of 30 years in prison.

He also pled guilty to one count of wire fraud and one count of money laundering.

He is also facing up to 20 years in prison and is awaiting sentencing.

 

 

 

By Raul

Raul Hernandez is a former journalist. He has worked as a newspaper reporter for more than 30 years at the El Paso Herald-Post, El Paso Times, Press Enterprise in Riverside, California and the Ventura County Star in California. He was a court reporter for more than 20 years.

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