Rollinsford Man Sentenced For Serial Bank Fraud

          CONCORD, N.H. – Acting United States Attorney Donald A. Feith announced that United States Senior District Judge Joseph A. DiClerico today sentenced Christopher J. Bailey to a term of 33 months in federal prison based upon his previous pleas of guilty to one count each of Bank Fraud, False Statement on a Loan or Credit Application, and False Representation of Military Decorations and Medals (Stolen Valor).  Bailey, age 28, lived in Rollinsford, New Hampshire, at the time of the offenses for which he was sentenced.

          According to statements and documents relating to Bailey’s and sentencing, the Bank Fraud and loan-related offenses arose from Bailey’s execution of a scheme to serially defraud the federal government and at least ten private financial institutions of more than $1.6 million dollars.  The gist of Bailey’s scheme was to apply for loans based on the false pretense that the defendant had a successful agricultural business and the false representation that the defendant intended to use the funds to purchase farming equipment or other agricultural assets for use in that business.  Bailey executed the scheme over a nearly five year period beginning in late 2009.  The Stolen Valor charge arises from claims of military heroism that Bailey made to facilitate his fraud.  Bailey attempted to substantiate his false claims of service and heroism by counterfeiting military documents and presenting them to lenders.  In fact, Bailey never served in the military.

          “Schemes to defraud government programs and financial institutions cause significant harm to those programs and to the system lenders rely upon when making decisions on lending,” stated Acting United States Attorney Donald Feith.  “Our financial system relies on borrowers providing truthful and accurate information when seeking loans.  Fraudsters such as Mr. Bailey damage the entire system of lending by imposing greater costs on truthful borrowers.  Our office will continue to work with law enforcement to identify financial fraudsters and bring them to justice.”

          In addition to the prison term, Judge DiClerico sentenced Bailey to a period of five years of supervised release, which Bailey must serve after completing his prison term.  While on supervised release, Bailey will be required to abide by rules established by the court.  If he fails to abide by those rules, he can be forced to serve additional time in prison.  Finally, Judge DiClerico ordered Bailey to pay more than $670,000 in restitution to the lenders he defrauded.

          This case was investigated by criminal investigators in the Manchester (N.H.) office of the U.S. Secret Service and the Salem (N.H.) office of the U.S. Department of Agriculture, Office of Inspector General, and the Boston office of the Department of Defense’s Criminal Investigative Service (DCIS).  The case was prosecuted by Assistant U.S. Attorney Bill Morse.