CASPER – A lawsuit filed in federal court in late June alleges Paul McCown, the former chief financial officer of Wyoming Catholic College, defrauded an investment firm over $ 15 million.

According to the complaint filed by New York-based consulting firm Ria R Squared, McCown is accused of falsifying bank statements falsely showing that his bank account held more than $ 750 million.

McCown allegedly used these and other forged documents to secure a $ 15 million loan from R Squared. The lawsuit also alleges that McCown impersonated a genuine employee of Wyoming Community Bank to contact the company using an email address and phone number not associated with the employee or company. bank.

According to the WCC’s vice president of advancement, Joseph Susanka, McCown resigned his post on June 25 after being put on administrative leave on June 3 when the college learned of the allegations.

“Over the past month, experiencing such a breach of trust on the part of a leader of our institution has been both embarrassing and painful for Wyoming Catholic College,” said Susanka. “However, an initial internal review conducted by the College did not reveal any additional financial irregularities, and Wyoming Catholic College was neither sued nor a defendant in the lawsuit.”

Ed McFadden, a strategic communications specialist representing the WCC, said Wednesday the college was not involved in the lawsuit. He confirmed that the CFO position is still vacant.

Susanka said the other WCC employee named in the lawsuit, who initially introduced McCown to R Squared and was later named in a transfer of around $ 700,000 from the loan to another company, has also been put on leave. administrative.

Lawyers for R Squared did not respond to a request for comment on Wednesday. McCown, according to the case file, has yet to retain legal counsel and has not responded to an email seeking comment.

Court documents say McCown has been difficult to reach since the firm began investigating the alleged fraud and has not responded to multiple communications from lawyers and firm employees.

According to information in the complaint, McCown first contacted the company saying he was seeking WCC staffing consulting services. In March, McCown reportedly told the company he needed advice on his own investments as he said he had just received an influx of personal wealth.

In May, McCown reportedly asked R Squared for a short-term loan of $ 10 million to cover an unpaid bill for his company, McCown Enterprises LLC. McCown is the only member of the company. The amount was then increased to $ 15 million.

The balances, attestation statements and other legal documents provided to R Squared were on Wyoming Community Bank letterhead, the lawsuit said, were found to be forged and did not match those of the bank.

The statements were made to show, according to the complaint, a deposit of $ 750 million in McCown’s account in March 2021. The final balance before receiving the loan was represented at over $ 761 million, which ensured that the McCown company could easily pay him back. According to the complaint, this type of loan is commonly used to cover business costs.

The lawsuit also alleges that McCown used a fake email address and phone number to impersonate the vice president of the Lander branch. While verifying the information before granting the loan, the lawsuit says, a representative from R Squared called the bank and was directed to the employee’s voicemail. According to the lawsuit, this was used as a check even though no one at the company spoke directly with the employee.

According to the complaint, documents were also notarized by a COE employee, whose lawsuit says he was probably unaware of the alleged fraud.

R Squared is making eight claims in his lawsuit, filed on June 22. These include charges of fraud, breach of the loan contract, and financial damage to the business. In the lawsuit’s initial complaint, lawyers for the firm are seeking an injunction to prevent any further transfer of the loan money.

An investigation reportedly revealed that McCown had transferred almost all of the loan money – in addition to less than $ 1 million unrecorded – to various entities. Hundreds of thousands of dollars were reportedly sent to members of his own family, the state of Wyoming, and a financial services company on behalf of a university employee.

Over half a million dollars were also reportedly transferred to McCown’s personal account at Wyoming Community Bank. It appears he was then sent to Trolan, LLC, a Michigan-based company that it is speculated could be owned or affiliated with McCown, who is originally from Michigan.

The largest amount went to college, in the form of an anonymous donation of $ 10 million. The college confirmed to lawyers that it received the money and is now in the process of returning it, McFadden said.

Another $ 500,000 appears to have been transferred to a fund at Goldman Sachs, which also reportedly served as a transfer point for the $ 10 million donation.

All transfers are also a violation of the loan agreement, according to the complaint, as it stated that McCown needed written permission from the company to make transfers from the account.

Source link