PHOENIX (AP) - Two Phoenix man have been sentenced to prison and ordered to pay $4.5 million in restitution for defrauding the Small Business Administration and two banks by providing false information to get loans.
A federal judge on Tuesday sentenced 58-year-old Harold Halman II to three years in prison and 62-year-old Alexander Schaap to two and a half years in prison.
A third defendant, 44-year-old Craighton Boates of New River, was sentenced to five years in prison.
The U.S. Attorney’s Office says the fraud involved a medical equipment company that submitted loan applications containing false information, including the use of the loan money and concealment of a kickback.
According to the office, the defendants defaulted on nearly $4.5 million of loans in the course of scheme to defraud banks out of more than $6 million.
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