Va. #Beach business owner pleads #guilty to $3.9M #fraud

NEWPORT NEWS, Va. (WAVY) — A Virginia Beach business owner pleaded guilty Tuesday to a money laundering scheme that resulted in a loss of at least $3.9 million.

Authorities say 58-year-old Edward Zinner operated Ocean Equity, a company that worked in credit card processing and merchant cash advances.

Zinner — and others acting on his behalf — provided false representations to investors and lenders in order to get $4.5 million in funds.

Authorities say Zinner also got six business loans totaling $3 million for the company. Zinner falsely represented that they would not be used for personal, family, or household purposes.

Instead, Zinner spent a large portion of this money on things like travel, gambling, day-trading, mortgage payments and medical bills.

Authorities say a total of $2 million was transferred from Ocean Equity accounts to Zinner’s own personal accounts between 2011 and 2016.

Zinner still owed private investors and lenders $3.9 million when he closed down the business in 2016. He faces a maximum of 10 years in prison when he is sentenced in February of 2018.

Source:http://wavy.com/2017/10/17/va-beach-business-owner-pleads-guilty-to-3-9m-fraud/

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