Senior Businessman Sentenced to Over Six Years in Prison for Bank Fraud and $21 Million Tax Evasion | USAO-EDPA

PHILADELPHIA — U.S. Attorney Jennifer Arbittier Williams announced that Christopher Hogg, 63, of Gladwyne, Pennsylvania, was sentenced to six years and three months in prison and two years of supervised release, and ordered to confiscate more than 17 million and to compensate more than $750,000 by U.S. District Judge Nitza I. Quinones Alejandro for his participation with two co-conspirators in a loan fraud scheme worth more than $21 million .

In September 2021, the accused pleaded guilty to charges of conspiracy to commit bank fraud, bank fraud, filing a false statement and tax evasion. The bank fraud charges stemmed from an insurance premium funding scheme that Hogg and others carried out from approximately November 2016 to January 2018. The scheme worked as follows: Hogg and his co-conspirator Rennie Rodriguez submitted approximately 35 funding requests to a finance company, allegedly for bounties. finance loans to buy insurance, but in reality the loans were not intended for this purpose. Another co-conspirator within the finance company, Neal Dunoff, waived loan verification procedures and approved the loans, in exchange for compensation from the defendant. Rodriguez and Dunoff have pleaded guilty to their involvement in the scheme and are awaiting sentencing. Hogg used the proceeds of this fraudulent scheme as capital for his businesses as well as to support his luxurious lifestyle, including payments for a Mercedes Benz S-Class, country club dues, vacations, as well as buying of a million dollar mansion on the mainline.

The tax evasion charges stem from Hogg’s failure to report more than $370,000 in income on the 1040 tax form he filed for the 2016 tax year, and his failure to report more than 1. $7 million in income for the 2017 tax year (for which he never filed a return), resulting in a total tax loss to the government of approximately $750,000 for both years.

“This defendant abused the banking system in an attempt to enrich himself and his accomplices, while deceiving the bank and the government of the United States,” US Attorney Williams said. “He tried to play games to avoid fulfilling his fiduciary and tax obligations, but dedicated investigators into this case discovered his lies. Today’s sentence does justice to those Mr. Hogg tried to defraud.

“Financial fraudsters are costing this country billions in losses,” said Special Agent in Charge Jacqueline Maguire. “Today’s sentence is significant enough to serve as a warning to other criminals: think carefully about whether the ill-gotten gains you receive are worth going to jail; because that’s exactly where you’re going.

“This conviction is a positive message for honest, hard-working Americans who file correct tax returns and pay their fair share,” said IRS Criminal Investigations Special Agent Yury Kruty. “Sir. Hogg’s decision to evade tax liability is a crime. Today justice has been served and Mr. Hogg is on his way to federal prison.

The case has been investigated by the Federal Bureau of Investigation and the Internal Revenue Service, and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.

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