Earlier this month, it was announced that 58-year-old David Harris Lavine of Rockville, Maryland had been sentenced to three years in federal prison. The defendant was also sentenced to two years of supervised release for bank fraud in relation to a scheme to defraud the financial institution where he served as acting president and later president. Lavine has been ordered to pay $892.541.75 in restitution to the financial institution and $365,228.80 to the IRS.
From March 2010 until January 2011, Lavine served as the acting president of CFG Community Bank. His plea agreement explains that he admitted to diverting $100,000 of bank funds for his own benefit. The defendant instructed bank employees to wire funds, which were mischaracterized as payments to a mortgage broker on bank loan refinances, to a company belonging to his friend. Lavine lied to his friend about the source of the money. The friend paid the $100,000 to Lavine.
Lavine eventually resigned from CFG Community Bank to accept the position of president of Capital Financial Ventures, CFV. CFV is an affiliate of the bank. Shortly after that, he devised a scheme to defraud the bank using the refinance of two bank-owned commercial mortgage loans and the diversion of the bank’s loan payoffs for his benefit and the benefit of his co-defendant, Charles Tobias. The defendant also admitted to failing to report income of more than $176,000 in 2010.
He also failed to report income of $480,289.44 from the loan fraud proceeds and two stolen insurance refunds in 2011. 56-year-old Charles L. Tobias of Potomac, Maryland previously pleaded guilty to willfully subscribing to a false tax return. He was sentenced to two years of probation. Further details can be found here.