Former Candidate for Mayor Falls Victim to Loan Fraud
Former Philadelphia mayoral candidate says he lost $1.4 million in an alleged Ponzi scheme.
PHILADELPHIA (AP) — A former Philadelphia mayoral candidate says he lost $1.4 million in an alleged Ponzi scheme.
The Philadelphia Inquirer reports Tom Knox was among several people who fell victim to a $30 million loan fraud operation led by 47-year-old Gary Alan Frank.
Frank owned the Philadelphia-based legal services company Legal Coverage Group Ltd. Federal investigators say Frank inflated the size of his business, claiming in bankruptcy filings it had $378 million in revenue last year when it really had less than $2 million.
Knox says Frank kept up with his interest payments on his loan however, up until his arrest March 16.
Federal authorities have charged Frank with wire fraud.
Information from: The Philadelphia Inquirer, http://www.inquirer.com
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