Skip to main content

Five plead guilty in Arizona boat-loan fraud

Five defendants pleaded guilty in federal court this week to defrauding banks of $5.4 million in a conspiracy involving the Surfside Boat Center, a high-end boat dealership in Mesa, Ariz., that is now defunct.

The defendants are David Orville Allen, 57, now residing in Texas; David’s brother, Jeffrey Allen, 56, of Mesa; David’s sons, David Brooks Allen, 34, of Gilbert, and Christopher Allen, 32, now residing in Idaho; and Matthew Ulrich, 43, of Mesa, according to reports.

The charges stem from the defendants’ use of the boat dealership, which the Allen family owned from May 2001 until it went into bankruptcy in late 2008, to fraudulently obtain millions of dollars in purchase loans from banks.

More than 50 loans from 11 lenders were represented to be for legitimate boat sales, but were instead for straw sales, and the defendants put the funds to personal use. The defendants ultimately defaulted on the loans.

The defendants pleaded guilty to charges of conspiracy, bank fraud and money laundering. Under the terms of the plea agreements, all of the defendants face prison terms and must repay the loan balances to the banks.

“This scheme was a family affair to rip off banks,” U.S. Attorney Dennis Burke said in a statement. “These defendants sought to get rich by taking out dozens of loans using boats that had either already been sold or used as collateral on other loans and leaving the banks holding the bag.”

All five defendants are set to be sentenced in early August.

Click here for the full article.

Related

FUTURE-ANGLERS

FAF Brings New Anglers into the Fold

The nonprofit organization will leverage Giving Tuesday on Nov. 29 to raise funds for its grassroots fishing and boating participation efforts.

1_NAOS.YACHTS.EXPANDS

Naos Yachts Plans New Offices

The San Francisco Bay area location will expand the dealer’s midcoast footprint and help grow its Groupe Beneteau, Lagoon, Neel, CNB Yachts, Four Winns and Wellcraft brands.

1_THANKSGIVING

Trade Only Today Returns Monday

The e-newsletter will not publish Thursday, Nov. 24, and Friday, Nov. 25, in observance of the Thanksgiving holiday.

CORRECT-CRAFT-ORPHANAGE

Correct Craft Gives Back

Employees spent a day serving at the Florida United Methodist Children’s Home, impacting more than 500 kids in need.

1_GH.ELECTRIC.HOIST

GH Motion Launches All-Electric Lift

The GH70e mobile boat lift is powered by a modular solar/battery system and has a 65-ton capacity.

1_PULSE.PING

Dealers: Are You in Compliance?

A new FTC Safeguards Rule designed to protect consumers’ personal information goes into effect Dec. 9 — are you prepared?

1_NMMA-CANADA

NMMA Canada President Steps Down

NMMA Canada president Sara Anghel is leaving the recreational boating trade group after nearly 15 years of service.

1_DEALER.OUTLOOK

Ohio Ordered To Get Serious About Algae

Many are applauding a judge’s proposed consent decree that will serve as a roadmap to address western Lake Erie’s chronic algal blooms.