North Wales Fraudster Used $72 Million In Business Loans For Old Debts: Feds

NORTH WALES, PA — A Montgomery County businessman has been sentenced to four years in prison after defrauding lenders from whom he received massive $72 million loans, federal authorities said.

Joshua Coleman, 39, of North Wales, who pleaded guilty to wire fraud, has also been sentenced to three years of probation and $57.2 million in restitution by U.S. District Judge Kelley Brisbon Hodge.

From Aug. 2020 to June 2022, Coleman convinced two lenders to provide him with the massive sum, lying to them that he planned on purchasing insurance companies, the U.S. Attorney's Office in the Eastern District of Pennsylvania said.

However, Coleman only used around $10.9 million to buy the companies, and instead used the remaining $61 million to pay for a wide variety of personal expenses, business debts, and to attend the needs of other companies he owned, according to officials.

One day after receiving around $25 million of the loan, he immediately sent $20.1 million to pair of former investment advisors, without the knowledge or consent of his lenders, authorities said. In the past, Coleman had misappropriated the funds of those advisors.

“Coleman brazenly lied to his lenders, falsifying documents and forging signatures to help conceal his scheme,” said U.S. Attorney David Metcalf said in a statement. “Instead of using the funds as intended, he spent most of those millions paying off business debts and for personal expenses."

Metcalf said that his office would continue to "target" financial fraudsters like Coleman.

In order to get the loan agreement to come into effect, Coleman also falsified four separate lien termination forms, even though those liens were still active, officials said.

The Securities and Exchange Commission has also filed civil charges against Coleman.