February 9, 1995 in Nation/World

Group Pleads Guilty To Disaster Loan Scams

From Staff And Wire Reports
 

Eight people pleaded guilty to participating in a ring that fraudulently applied for millions of dollars in aid intended for victims of California disasters.

The ring allegedly submitted more than 100 fraudulent loan applications relating to the 1992 Los Angeles riots, 1993 wildfires and the 1994 Northridge earthquake.

The eight who entered pleas Tuesday had applied for a combined total of $2.62 million in loans, and had received $904,000, Price said. Some applications claimed damage to businesses that didn’t exist; others included phony tax records, invoices or other documents.

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