Woman arraigned on $1 million bank fraud, false passport claims
BURLINGTON >> A woman accused of defrauding three lending institutions out of over $1 million and using another person's information in a passport application was arraigned in federal court on Wednesday.
Federal prosecutors allege that Alison Gu, 40, of Cheshire, Conn., falsified documents and used multiple false names on mortgages, according to a news release from the U.S. Department of Justice. A three-count indictment accuses Gu of obtaining mortgages from three lending institutions, among them, the Bank of Bennington.
U.S. Magistrate Judge John M. Conroy ordered that Gu be released on conditions, including that she not open new lines of credit pending trial.
The three count indictment was filed against Gu in U.S. District Court of Vermont on June 16 and became unsealed on June 21.
Prosecutors allege Gu obtained a mortgage loan from the Bank of Bennington in the amount of $417,000, a mortgage loan from First National Bank of America in the amount of $230,250, and a loan from Emigrant Mortgage Company in the amount of $412,500, all for a total of $1,059,750. Prosecutors are seeking the forfeiture of any property obtained through the fraudulent loans.
The indictment names three properties: One on Read Farm Road in Dorset, another on Cedar Avenue in Cocoa Beach, Fla., and one on Old Snow Valley Road in Winhall.
Prosecutors allege that Gu established false identities using social security numbers of deceased individuals; submitted altered bank statements; forged employment records and pay statements to the financial institutions; and forged a signature of a U.S. consular official in Beijing, China.
They also accuse her of making false statements and using another person's information in a March 27, 2015 application for a U.S. passport in Vermont.
Gu faces up to 30 years in prison for bank fraud; up to 10 for making a false statement in a passport application; a mandatory two-year sentence for using another person's information in a passport application; and potential fines up to $1,000,000.
Gu was arrested in Connecticut on June 13, 2016, and made an appearance in federal court that day, where she was ordered to appear in Burlington.
The United States Department of State Diplomatic Security Service in St. Albans was the investigative agency. Assistant U.S. Attorney Kevin J. Doyle is serving as prosecutor. Gu is being represented by David L. McColgin of the Federal Defender's Office.
Contact Edward Damon at 413-770-6979
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