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

[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....

[Uncle Chip]

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???

[stockpirate]

Sounds like democrats helping democrats

[PeterPrinciple]

So when do they indict the bankers???

---

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

[Tupelo]

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.

[yldstrk]

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

[Uncle Chip]

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

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

[tennmountainman]

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

[smokingfrog]

[Bulwyf]

You bring up a very excellent point.

[Bulwyf]

Our governments do that constantly.

[Lockbar]

did he have an Obama-phone?

[Lockbar]

LOL! Its just one more, isn’t it?

[Tea Party Terrorist]

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

[Tea Party Terrorist]

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

[Neidermeyer]

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.

[SgtHooper]

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

[SgtHooper]

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

[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.

[crazycatlady]

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

[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?