DENVER—A Colorado man has been arrested on suspicion of wire fraud and money laundering for allegedly collecting more than $1 million in advance fees for loans that never materialized.
David Gwin of Commerce City was arrested Wednesday, a day after he was named in a 15-count federal indictment.
The indictment alleges the 50-year-old Gwin collected $1.1 million in fees from clients seeking multimillion-dollar loans between October 2003 and July 2005.
The indictment says Gwin didn’t arrange the loans and in most cases didn’t refund the fees.
No phone number could be found for Gwin or his company, and it wasn’t immediately known if he had an attorney.
Authorities say Gwin ran a business called Asset Funding Solutions Inc., later called Asset Global Funding Inc. The company said it found private investors to fund loans for investment projects and made such loans itself.
The indictment includes 11 counts of wire fraud, three counts of money laundering and one asset-forfeiture count, which is the government’s bid to seize any illicit proceeds.
Conviction of wire fraud carries a penalty of up to 20 years in prison and a fine of up to $250,000 for each count. Conviction of money laundering carries a term of up to 10 years and a fine of up $250,000 for each count.
