ANCHORAGE—U.S. Attorney Karen L. Loeffler announced today that an Anchorage
man was sentenced in federal court in Anchorage for 12 counts of false
statements to a credit union.
Lee E. Baker, Jr., 57, from Anchorage, Alaska, was sentenced today by Chief
U.S. District Court Judge Ralph R. Beistline, to 36 months in prison.
According to Assistant U.S. Attorney Retta Randall, who prosecuted the case,
Baker made false statements to Denali Alaskan Federal Credit Union (DAFCU) while
drawing down the proceeds of a $9.2 million construction loan obtained for a
proposed 85 unit apartment project, “Bryn Mawr,” located on Northern Lights
Boulevard in Anchorage. Baker, as president of Discovery Construction Inc.,
submitted 12 draw requests certifying each time that certain work had been
completed on the Bryn Mawr project, when actually, very little work had been
done and the total amount Baker verified as completed was false. The Bryn Mawr
project was never completed. As a result of his false statements, approximately
$4.3 million was disbursed to Baker by DAFCU before he defaulted on the
loan.
Judge Beistline, after imposing sentence, stated, “Ultimately the success of
the banking industry and the construction industry depends on integrity.” Judge
Beistline went on to acknowledge that the construction industry in Alaska faces
challenges, but insisted that, “when facing challenges, the highroad must be
taken.” He further indicated that fundamental principles of honesty and
integrity are necessary to deal with problems before others get hurt and that
the community cannot tolerate this kind of deception. Giving Discovery
Construction credit for work completed on the Byrn Mawr project, Baker was
ordered to pay $3 million in restitution.
United States Attorney Karen Loeffler noted, “Financial crimes such as those
committed by Baker create significant and lasting harms on the community as well
as the businesses affected. The Alaska federal law enforcement community is
dedicated to working together to investigate and prosecute these serious
crimes.”
FBI Special Agent in Charge Mary Rook stated, “The FBI will continue to work
with our law enforcement partners to address significant financial crimes which
impact a wide range of individuals, businesses, and industries. As is frequently
the case, the impact of this crime was more widespread than just those
immediately identified as victims, as the losses sustained by Denali Alaskan
Federal Credit Union were also felt by its members.”
Ms. Loeffler commends the Federal Bureau of Investigation and the Internal
Revenue Service-Criminal Investigation Division for the investigation of this
case.
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