Walter Fox lived a life of luxury. Over a period of 16 years, he spent approximately $8.2 million on his family. What did Fox do for a living? He was a loan officer at Key Bank. Before sending resumes to Key in hopes of landing such a high paying job, understand that Fox is spending the next 10 years of his life in a federal prison cell for tax evasion and other crimes. Fox didn’t exactly “borrow” money from the bank by conventional means.
Prosecutors say that Fox worked as a loan officer at Casco Northern Bank. Casco was later acquired by Key Bank. During his tenure as a loan officer, Fox obtained loans in the names of 4 real people, none of whom were aware of the loans. According to documents filed with the court, Fox engaged in an elaborate scheme to increase the size of the loans and use one loan to pay monthly payments on other loans. He also created fictitious collateral and then forged the signature to pledge the collateral to the bank.
Ultimately, the government says that Fox took $14,000,000 from the banks. Part was used for debt service while over $8 million was used to fund his family’s lifestyle and support a mistress he had in another city. The mistress was 30 years his junior. In his sentencing memorandum, Fox claimed he had an addiction to escorts and apparently used the banks money to support his Mistress, Cherish.
The scheme collapsed when there was simply no more money to pay debt service on the loans. Fox abruptly resigned and moved out of the area. That didn’t stop the IRS and FBI. Fox was charged with one count of bank fraud and one count of tax evasion.
Federal prosecutors will often add tax evasion counts to indictments. While it might be difficult to prove the underlying criminal charges against a white-collar defendant, it is usually easy to prove that these same defendants spent far more money than they legitimately made and reported on their tax returns.
Fox pleaded guilty immediately after being charged. Under the U.S. Sentencing Commission guidelines, Fox faced 108 to 135 months in prison. His lawyer argued for a lesser sentence, suggesting that Fox suffered from diminished capacity.
U.S. District Court Judge Brock Hornby sentenced Fox to 120 months in prison and ordered him to pay over $9 million in restitution. It is doubtful he will have the ability upon his release. In sentencing Fox, the court said it needed to send a message, promote respect for the law and provide just punishment because Fox elected to live a lifestyle that most folks cannot afford.
Having a problem with the IRS? Come talk to us before it spirals out of control. The IRS operates on a first contact policy meaning that people who come forward first are usually treated far better than those who wait and are caught. Need more information? Contact attorney Brian Mahany at or by telephone at (414) 704-6731. All inquiries protected by the attorney – client privilege.