Powerhouse Gym of Baton Rouge….Federal charges filed…. Alleged bank fraud scheme

Powerhouse Gym of Baton Rouge….Federal charges filed alleged bank fraud schemePowerhouse Gym of Baton Rouge….Federal charges filed alleged bank fraud schemePowerhouse Gym of Baton Rouge….Federal charges filed alleged bank fraud scheme Two Baton Rouge businessmen are charged with bank fraud in what federal prosecutors say involved $368,469 in loans they obtained for construction of a fitness center that did not open.

Court records show Matthew Scott Bernard, 43, is charged two counts of bank fraud and two counts of false statements to banks. Ronald Joseph Olah Jr., 36, is accused in the same indictment of two counts of bank fraud and two counts of wire fraud.

The Advocate reports (http://bit.ly/17a9kYq) that the indictment was returned by a grand jury May 30, but sealed from public view until after Bernard was arrested June 7.

The indictment alleges Bernard and Olah inflated the value of their personal and business assets in order to persuade officials at First Bank and Trust to lend Fitness Concepts of Baton Rouge LLC $146,000 in September 2011. Olah is described in the indictment as Fitness Concepts’ operator.

The indictment alleges the bank loan was earmarked by Bernard and Olah for development of a new facility, Powerhouse Gym of Baton Rouge.

The indictment alleges Bernard and Olah employed the same scheme to persuade officials at First Guaranty Bank to lend Fitness Concepts another $222,469 in November 2011.

Olah was released on bail Thursday. Bernard was ordered detained until trial by U.S. Magistrate Stephen C. Riedlinger. The judge issued that order after learning of a 2001 case in which Bernard fled to Canada rather than report to federal prison to begin serving 33 months for conviction on a charge that he was a felon found in possession of a firearm.

For fleeing to Canada, a judge added 27 months to Bernard’s 33-month prison term on the firearm violation.

In February, Louisiana Attorney General Buddy Caldwell sued Olah and Bernard, alleging that they and others violated state regulations in promotions for Powerhouse Gym.

The state alleges that Olah and Bernard sold memberships in Powerhouse Gym before it was built. They also did not purchase a security bond or certificates of deposit as required by state rules, according to the suit.Two Baton Rouge businessmen are charged with bank fraud in what federal prosecutors say involved $368,469 in loans they obtained for construction of a fitness center that did not open.

Court records show Matthew Scott Bernard, 43, is charged two counts of bank fraud and two counts of false statements to banks. Ronald Joseph Olah Jr., 36, is accused in the same indictment of two counts of bank fraud and two counts of wire fraud.

The Advocate reports (http://bit.ly/17a9kYq) that the indictment was returned by a grand jury May 30, but sealed from public view until after Bernard was arrested June 7.

The indictment alleges Bernard and Olah inflated the value of their personal and business assets in order to persuade officials at First Bank and Trust to lend Fitness Concepts of Baton Rouge LLC $146,000 in September 2011. Olah is described in the indictment as Fitness Concepts’ operator.

The indictment alleges the bank loan was earmarked by Bernard and Olah for development of a new facility, Powerhouse Gym of Baton Rouge.

The indictment alleges Bernard and Olah employed the same scheme to persuade officials at First Guaranty Bank to lend Fitness Concepts another $222,469 in November 2011.

Olah was released on bail Thursday. Bernard was ordered detained until trial by U.S. Magistrate Stephen C. Riedlinger. The judge issued that order after learning of a 2001 case in which Bernard fled to Canada rather than report to federal prison to begin serving 33 months for conviction on a charge that he was a felon found in possession of a firearm.

For fleeing to Canada, a judge added 27 months to Bernard’s 33-month prison term on the firearm violation.

In February, Louisiana Attorney General Buddy Caldwell sued Olah and Bernard, alleging that they and others violated state regulations in promotions for Powerhouse Gym.

The state alleges that Olah and Bernard sold memberships in Powerhouse Gym before it was built. They also did not purchase a security bond or certificates of deposit as required by state rules, according to the suit.