United States of America v. Zealand Benjamin Thigpen, III

Tulsa, OK - Man Pleads Guilty to Defrauding Bank and Small Business Administration of Millions



A Tulsa man entered a guilty plea for defrauding a bank of nearly $5 million and to bankruptcy fraud.



Zealand Benjamin Thigpen III, 68, pleaded guilty in U.S. District Court to defrauding Arvest Bank of $4,754,488 from 2015 to 2017.



As part of his scheme, Thigpen owned and operated Julimar Trading, LLC., which bought and sold refined metal alloys, principally for the production of steel. Julimar’s operations were funded by Avrest Bank and, in part, guaranteed by the Small Business Administration. The bank financing was secured by his company’s inventory and accounts receivable, as well as Thigpen’s personal guarantees. When submitting financial documentation to the bank on October 4, 2016, Thigpen provided false information about the value of Julimar’s inventory and accounts receivable, explaining the inventory was worth $5,816,335. As a result, Arvest and Small Business Administration continued his line of credit under false pretenses. In fact, the accounts receivable and inventory were nearly non-existent.



Later, on November 18, 2016, Thigpen filed pursuant to Chapter 7 in U.S. Bankruptcy Court, and once again lied about Julimar’s inventory, stating that it was worth just over $3.3 million, when he was fully aware it only totaled only a few thousand dollars.



“Mr. Thigpen defrauded Arvest Bank and the federal government of more than $4.7 million. Moreover, he exploited a system set up to provide opportunities to innovative entrepreneurs pursuing legitimate businesses,” stated U.S. Attorney Trent Shores. “Fraudsters like Mr. Thigpen hurt the health of our economy. Our federal prosecutors who focus on white collar crime take great pride in the fact that they help protect the integrity of our financial institutions. I appreciate their diligence and commitment to upholding the rule of law.”



As part of his plea, Thigpen agreed to the entry of a forfeiture money judgment of $4,754,488. U.S. District Judge Claire V. Eagan set sentencing for March 20, 2019. Thigpen faces a maximum penalty of 30 years in prison as to the bank fraud and 5 years in prison as to the bankruptcy fraud.



This case resulted from a joint investigation performed by the Offices of Inspectors General of the Department of the Treasury and the Small Business Administration.

18:1344 - BANK FRAUD;18:982(a)2)(A) - BANK FRAUD FORFEITURE

(1)

18:157(3) - BANKRUPTCY FRAUD

(2)

12/14/2018 13 MINUTES of Proceedings - held before Judge Claire V Eagan: Change of Plea Hearing held on 12/14/2018 , setting/resetting deadline(s)/hearing(s): ( Sentencing set for 3/20/2019 at 09:00 AM before Judge Claire V Eagan), guilty plea entered, defendant remain/released on conditions as to Zealand Benjamin Thigpen, III (1) (Court Reporter: Greg Bloxom) (crp, Dpty Clk) (Entered: 12/14/2018)

12/14/2018 14 WAIVER of Right to Trial by Jury approved by Judge Claire V Eagan by Zealand Benjamin Thigpen, III (1) (crp, Dpty Clk) (Entered: 12/14/2018)

12/14/2018 15 PETITION to Enter Plea of Guilty and ORDER Accepting Plea by Judge Claire V Eagan as to Zealand Benjamin Thigpen, III (1) (crp, Dpty Clk) (Entered: 12/14/2018)

12/14/2018 16 PLEA AGREEMENT by USA, Zealand Benjamin Thigpen, III (1) as to Zealand Benjamin Thigpen, III (1) (crp, Dpty Clk) (Entered: 12/14/2018)

12/14/2018 17 SEALED PLEA SUPPLEMENT (crp, Dpty Clk) (Entered: 12/14/2018)