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Second EFI Leader Sentenced to 20 Years

September 13, 2012, 06:13 AM
Filed Under: Fraud
Related: Fraud

The second leader of the Equipment Finance Inc. loan fraud was sentenced on Wednesday, September 12 to 20 years in prison. Michael J. Schlager also was ordered to pay restitution of $53 million by U.S. District Judge Paul S. Diamond in Philadelphia.

This follows that of Joseph M. Braas, who was sentenced to 15 years in prison and restitution in the same amount. The local press reported that Braas’ willingness to provide “new information” to investigators resulted in his receiving a lighter sentence. Schlager and Braas are the first of eight defendants to be sentenced in the massive fraud, which forced the sale of a major financial institution and triggered hundreds of layoffs.

The $53 million restitution imposed by the sentence on the two is "joint and several" and leaves both  liable for the same debt.

Schlager of Lititz, PA was a senior vice president and recovery, workout and repossession manager at EFI.

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