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Man, 30, who stole $11 MILLION from banks to fund his 'rock star' lifestyle ....
The Daily Mail Online ^ | January 4, 2014 | ASSOCIATED PRESS and ALEXANDRA KLAUSNER

Posted on 01/04/2014 6:44:46 AM PST by Uncle Chip

The frontman for a fledgling Los Angeles rock band who was sentenced to seven years in prison in after illegally bilking more than $11 million from banks and using it to fuel his fantasy of being a rock star says he 'regrets losing control' over his fraudulent fortune.

Robert Mawhinney, 30, pleaded guilty in April to five counts, including money laundering. He was sentenced to seven years in prison in October.....

He received more than $11 million in loans from four banks. Prosecutors said he gave lenders statements that claimed he had nearly $8 million in assets, but it turned out his account had less than $10,000, authorities said.

With his borrowed money, Mawhinney managed to afford a $10,500 a month house in the Hollywood Hills and he managed to buy his dreams of becoming a rock star in order for them to come true.

In 2009 he was able to gain access to a recording studio equipped with session musicians and string support....

(Excerpt) Read more at dailymail.co.uk ...


TOPICS:
KEYWORDS: rockstar
No one ever heard of this guy or his band or bothered to check up on his paperwork and he gets $11 million from four banks ...

So when do they indict the bankers???

1 posted on 01/04/2014 6:44:46 AM PST by Uncle Chip
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To: Uncle Chip

Sounds like democrats helping democrats


2 posted on 01/04/2014 6:54:23 AM PST by stockpirate (It appears good men have decided to do nothing, so evil is prevailing......)
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To: Uncle Chip

So when do they indict the bankers???


At some point it became “to big to fail”, so they kept investing.


3 posted on 01/04/2014 6:56:17 AM PST by PeterPrinciple
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To: Uncle Chip
Interesting story. What I don't understand is, why is it illegal for Robert Mawhinney to do what the Federals and some cities, counties and states do every day?
Borrow, spend like the kings of old, then borrow more to pay the interest on the first loan. Then repeat over and over and over in perpetuity.
4 posted on 01/04/2014 6:58:56 AM PST by Tupelo (I am feeling more like Philip Nolan every day)
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To: Tupelo

that’s exactly what I was going to say, our government does this in spades every day


5 posted on 01/04/2014 7:07:34 AM PST by yldstrk (My heroes have always been cowboys)
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To: Tupelo

Apparently it’s not illegal to “borrow it”.

It becomes a criminal matter when you fail to pay back what was borrowed.


6 posted on 01/04/2014 7:09:52 AM PST by Uncle Chip
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To: Uncle Chip

I think the prison boys are really gonna like this pajama boy.


7 posted on 01/04/2014 7:18:50 AM PST by tennmountainman (Just Say No To Obamacare)
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To: stockpirate

8 posted on 01/04/2014 7:19:02 AM PST by smokingfrog ( sleep with one eye open (<o> ---)
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To: Tupelo

You bring up a very excellent point.


9 posted on 01/04/2014 7:38:07 AM PST by Bulwyf
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To: Uncle Chip

Our governments do that constantly.


10 posted on 01/04/2014 7:38:32 AM PST by Bulwyf
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To: stockpirate

did he have an Obama-phone?


11 posted on 01/04/2014 7:43:04 AM PST by Lockbar ("WWVTID?": What Would Vlad The Impaler Do?)
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To: smokingfrog

LOL! Its just one more, isn’t it?


12 posted on 01/04/2014 7:43:39 AM PST by Lockbar ("WWVTID?": What Would Vlad The Impaler Do?)
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To: Uncle Chip

It’s a Human Right to live like a rock star.


13 posted on 01/04/2014 7:47:00 AM PST by Tea Party Terrorist (Why work for a living when you can vote for a living?)
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To: Uncle Chip

It’s a Human Right to live like a rock star.


14 posted on 01/04/2014 7:47:01 AM PST by Tea Party Terrorist (Why work for a living when you can vote for a living?)
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To: Uncle Chip

This man is less guilty than the bankers that authorized the loans... When do the bankers go on trial? If I was on a jury I’d let him go.


15 posted on 01/04/2014 8:12:50 AM PST by Neidermeyer (I used to be disgusted , now I try to be amused.)
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To: Uncle Chip

Does he actually hafta pay it or some back, or does the prison time cancel it? If the latter, crime pays!


16 posted on 01/04/2014 8:37:41 AM PST by SgtHooper (If at first you don't succeed, skydiving is not for you.)
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To: Tupelo

It is because the govey entities do it for the “benefit of the people” whereas as he did it for himself. Both are criminal.


17 posted on 01/04/2014 8:39:24 AM PST by SgtHooper (If at first you don't succeed, skydiving is not for you.)
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To: Uncle Chip

This is the result of the FDIC. If the bankers were personally on the hook for the loss (and the angry customers) this would never happen... One lynch mob and it would all be taken care of. Tax payers, taking it in the shorts.


18 posted on 01/04/2014 9:33:17 AM PST by IncPen (When you start talking about what we 'should' have, you've made the case for the Second Amendment)
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To: PeterPrinciple

Now, now, never blame the banks, poor darlings.


19 posted on 01/04/2014 10:27:18 AM PST by crazycatlady
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To: IncPen
"This is the result of the FDIC. If the bankers were personally on the hook for the loss (and the angry customers) this would never happen... One lynch mob and it would all be taken care of. Tax payers, taking it in the shorts."

FDIC insurance is $250k per customer within a bank. He would have to be dealing with 44 banks to be insured this way.

Plus, I believe the FDIC insurance is for the customer against bank failure. The insurance money would go to the customer, not the bank.

Or are you talking about some other deal that I'm missing?

20 posted on 01/04/2014 12:01:51 PM PST by MV=PY (The Magic Question: Who's paying for it?)
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To: Uncle Chip

Where’s the proper due dilligence on these banks’ part exactly? They should have never given this dude a loan to begin with.


21 posted on 01/04/2014 12:10:11 PM PST by NYRepublican72
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To: MV=PY
"This is the result of the FDIC. If the bankers were personally on the hook for the loss (and the angry customers) this would never happen... One lynch mob and it would all be taken care of. Tax payers, taking it in the shorts." FDIC insurance is $250k per customer within a bank. He would have to be dealing with 44 banks to be insured this way.

Plus, I believe the FDIC insurance is for the customer against bank failure. The insurance money would go to the customer, not the bank.

Or are you talking about some other deal that I'm missing?

Yes, the depositors are protected when a bank fails, but the taxpayers are on the hook for this 'guarantee' (see: 1980s, Savings and Loan 'crisis').

My point is that the banks hand fiduciary responsibility over to the government, and thus have free reign to behave like jackasses.

It would be a better world if the bankers feared the depositors. And if the politicians feared the electorate.

22 posted on 01/04/2014 4:15:15 PM PST by IncPen (When you start talking about what we 'should' have, you've made the case for the Second Amendment)
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To: IncPen
"Yes, the depositors are protected when a bank fails, but the taxpayers are on the hook for this 'guarantee' (see: 1980s, Savings and Loan 'crisis'). My point is that the banks hand fiduciary responsibility over to the government, and thus have free reign to behave like jackasses. It would be a better world if the bankers feared the depositors. And if the politicians feared the electorate. "

Ah. I agree.

In fact, I don't like it at all when someone deals with another person's money (e.g. taxes). It's a market distortion.

Still, I think the banks are on the hook for this money (unless they fold). Someone will get in trouble and they'll make adjustments.

23 posted on 01/04/2014 4:20:46 PM PST by MV=PY (The Magic Question: Who's paying for it?)
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