Barry Horrow, 68, of Glenn Mills, PA pled guilty to four counts of bank fraud, according to United States Attorney for Eastern Pennsylvania, Zane David Memeger.
Horrow, a Certified Public Accountant, owned and operated his own company, Horrow and Associates. The company operated in both Delaware and Chester Counties.
The plea came after helping one of his clients, George Barnard of Newtown Square (who owned Capital Financial Mortgage Corporation and who was charged previously in an indictment with various offenses stemming from a $13 million scheme. Prosecutors said the scheme enticed lenders into issuing mortgages for three multi-million dollar New Jersey Shore beach mansions and a yacht with false tax returns, false audit reports, and other information.
Horrow admitted that he repeatedly provided false tax returns for Barnard to submit to lenders on which Horrow inflated Barnard’s income by hundreds of thousands of dollars, knowing the lenders relying on the inflated income figures in approving Barnard’s loan requests.
Horrow faces a maximum sentence of 120 years’ imprisonment, a five-year period of supervised release, a $4 million fine, and a likely advisory sentencing guideline range of 41 – 51 months’ imprisonment.Horrow also agreed, as part of his plea, to make restitution of nearly $3 million.
The case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development, Office of Inspector General, and the Internal Revenue Service, Criminal Investigative Division.
