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Virginia Business Owner Must Pay Back $4M for Fraud Scheme

A Virginia business owner who spent business loans on personal expenses, including his rock band, will pay more than $4 million in restitution, in addition to serving a 10-year federal prison sentence.

The Virginian-Pilot cites a U.S. Department of Justice release that says 58-year-old Edward Zinner was sentenced Thursday in connection with a fraud scheme.

The release says he operated Ocean Equity, a collection of businesses that engaged in credit card processing and merchant cash advances, through which he provided false representation to obtain more than $4.5 million. He also obtained six business loans worth $3 million that he spent on personal expenses, including gambling and his TGZ Band.

When Zinner closed his business in 2016, he still owed $3.9 million to investors.

He pleaded guilty to money laundering in October.

Information from: The Virginian-Pilot

Copyright 2018 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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