U.S. Attorney Dana J. Boente announced Wednesday the owner of Ocean Equity, a collection of business engaged in merchant cash advances and credit card processing, pleaded guilty to money laundering related to fraud scheme.
Fifty-eight-year-old Edward Zinner of Virginia Beach conspired with others to provide false representations to lenders and investors to obtain more than $4.5 million in proceeds. Zinner also obtained six loans for his business in the amount of $3 million. Promising to only utilize the money for Ocean Equity, Zinner spent a large portion of the money on travel, day trading, mortgage payments, vehicle expenses, medical bills, a rock bank, personal credit cards and renovations to his residence, according to court documents.
Zinner had transferred about $2 million of that money into his personal accounts from 2011 to 2016. When Zinner shuttered his business in 2016, he still owned about $3.9 million in loans.
Zinner faces a maximum 10-year prison sentence. His sentencing hearing is scheduled for February 6, 2018.