Gary Alan Frank, who wildly overstated the size of his Bala Cynwyd legal services business to obtain a $40 million line of credit, has pleaded guilty to 27 counts of wire fraud, bankruptcy fraud, and six counts of money laundering, the U.S. Attorney for the Eastern District of Pennsylvania said.
To obtain the loan from from Prudential Insurance Co. of America for Legal Coverage Group Ltd. at the end of 2014, Frank claimed that the company had $187 million in revenue that year. In reality the company had $120,000 in revenue that year.
The business was sold for $20,000 in December.
Spending borrowed money, Frank, 48, worked his way into the cultural life of Philadelphia, including positions on the boards of the Philadelphia Orchestra and the Philly Pops. He was charged in March 2018.
“Prosecuting economic crimes like the large-scale fraud in this case is a top priority for my office,” said U.S. Attorney William M. McSwain.
“Despite the defendant’s outwardly successful appearance and elite memberships, he is nothing more than a thief swindling individuals and businesses out of money to support his lavish lifestyle. We are making sure that criminals like the defendant are held accountable,” McSwain noted.