A Ferrari, A Bentley and a Federal Indictment – Andrew Maxwell Parker Finds Himself on the Wrong Side of the Law!

Every choice has a consequence! May 2008 will be remembered by 40-year-old Andrew Maxwell Parker, owner of San Antonio Trade Group, Inc., since he was indicted on conspiracy, wire fraud, money laundering, false statements and tax charges. It appears that Parker’s choices may be having unexpected consequences.

Parker’s indictment alleges that from February 2003 to November 2006, Parker schemed to defraud the Export-Import Bank of the United States (Ex-Im Bank) by stealing millions of dollars in loan proceeds from private U.S. lenders to Mexican business owners and causing multi-million dollar losses to Ex-Im Bank who guaranteed or insured those loans based on false applications and support documentation submitted by Parker. The indictment also charges Parker with defrauding lenders in transactions not insured or guaranteed by the Ex-Im Bank.

The indictment further alleges that Parker attempted to evade paying taxes owed in calendar years 2003 and 2004 by disguising account transfers of $588,000 and $816,720.55, respectively. Parker allegedly claimed the money was used to purchase equipment being exported to Mexico when in fact, he used the $588,000 to purchase a house in Dallas, Texas, and the $816,720.55 to purchase two Ferrari automobiles and one Bentley automobile for himself. He also funneled money to relatives, all from nominee accounts. Furthermore, the indictment alleges that he under-reported his actual income on his 2003 and 2004 tax returns.

In all, Parker is charged with conspiracy, nine counts of wire fraud, two counts of use of a false document, 12 counts of money laundering, two counts of tax evasion, and two counts of filing a false income tax return. The indictment also seeks the criminal forfeiture of his San Antonio residence at 407 E. Wildwood Dr. and his 2004 GMC Hummer H2, plus a monetary judgement in the amount of $10 million representing proceeds obtained directly or indirectly as a result of Parker’s alleged scheme.

While an indictment is only a formal accusation of criminal conduct and not evidence of guilt, rarely does the US Attorney’s office lose a case like this. More than likely this will be an open and shut case. The government may not get a conviction on all charges, but they will get a conviction. Considering the recency of the indictment, my guess is that Parker will use his resources to secure legal help in reaching a plea agreement that will minimize his prison time. Although Parker’s lawyer, John Pinckney, said Parker denies the allegations and wants a jury trial. If convicted he will likely spend substantial time in federal prison.

Parker has been the target of the FBI and criminal investigators of the Internal Revenue Service over more than $163 million in loans backed by the Export-Import Bank of the United States. The bank is a little-known federal agency that is supposed to help American companies export their products by backing high-risk loans to foreign businesses that are supposed to buy the products. It works with some private commercial lenders to get the loans and has to pay with taxpayer funds if the borrower defaults. Court records allege millions of dollars of loans handled through Parker defaulted and the bank had to cover them.

“I have been calling for a (Congressional) investigation because there is ample evidence that hundreds of millions of dollars of taxpayer money is simply disappearing from the Export-Import Bank as they appear to be guaranteeing loans to businesses that don’t exist,” said Congressman Jeb Hensarling of Dallas. “A lot of money was provided to companies and they never, ever repaid the loans. The bottom line is this a mess, it deserves a full investigation. I don’t know of the particulars of the case in San Antonio, but it is further evidence of federal program that has run amok and needs accountability and an investigation.”

“It started out as a well-intentioned program… but there is no oversight, like a board of directors in private (banking), to ensure that things aren’t hinky,” said David Williams, vice president of policy for Washington-D.C.-based watchdog Citizens Against Government Waste. “The federal government has been notorious about its lack of oversight. The last thing we need is a corporate welfare program that has no oversight on it.”

Every choice has a consequence. As a white collar crime and business ethics speaker, I speak from first hand experience about the truth about consequences. Reality is – no one escapes the consequences of their choices. While Parker may have looked good for a time and avoided the consequences – he did not avoid the consequences all together. If convicted Parker will find that prison is no fun and likely will be facing many years plus substantial restitution for his conviction. Serving time will prove to be a dramatic change from his prior activities. You do reap what you sow.

If anyone reading has any background on PARKERfeel free to comment as I study the behaviors and backgrounds of those indicted for white collar crime.

White Collar Crime Speaker – Chuck Gallagher – signing off…

THIS JUST IN…another reader provided these links related to Export-Import Bank frauds and sentences. See here and here.

Thanks!!!

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13 Responses to A Ferrari, A Bentley and a Federal Indictment – Andrew Maxwell Parker Finds Himself on the Wrong Side of the Law!

  1. marcie says:

    I have known Andrew for years. He was a blast and very generous, but could never answer as to what his profession was or how he obtained all his assets. He definitely lived the “great life” while it lasted.

  2. jon says:

    That guy is toast! He blew 90% of the money and stashed the rest over seas. I would imagine that the Judge didn’t let him out on bail due to the flight risk he poses. He knew it was coming but thought it would not back lash like this. Willing to bet he already had a ID and passport waiting to flee.

  3. jon says:

    As noted above, he has never been but nice to all of his friends, and very generouse!

  4. Dave says:

    No matter how nice he is/was to anyone the guy is a crook, a smart one too just not smart enough. He stole my money and your money, Let him rot in jail for a long time with BUBBA as his new boyfriend.

  5. b. says:

    anyone will be generous with something they didnt have to work for. i met this guy he is a jerk. he used the money to throw lavish parties with nude women serving drinks at his home in san antonio, tx. which would be ok if it werent taxpayer money. and dated a lot of different women and lied to everybody. he deserves more than whatever he gets for stealing and waisting our money.

  6. jon says:

    he’s still there!

  7. c says:

    Never thought he was like that. Really nice guy to me from what I know. Met him at the gym and we talked about practically nothing years ago.

  8. P says:

    I met Andrew professionally and he invited me to his home in S.A. He was just moving in. He was interested im ny Ex Im Bank background and was picking my brain. He showed me his cars, bottom floor of his house and a desk he purchased that belonged to one of the Supreme Court Justices. he bragged about not having a college education and said “look at me now”. I tried to pick his brain about how his business worked and he said “I can’t tell you or you will steal my idea and do it yourself”. He gave me a few export scenarios that did not make any sence. I smelt a rat and left. He is a truely sick individual and attempted to fraud one of the best Government organizations I know. He had the balls to show up at Ex Im Bank conferences even after they discovered his scheme. He deliveratley stole tax payor money and deserves every day he spends in jail.

  9. Horatio Lizaola says:

    Victor Garate was a hero in his hometown San Luis Potosi, bragged about his success and “import-export” business, money came in bundles for him and all one would know is that he was selling/financing mining equipment and school buses??? very different type of business and it would make you wonder… he brought friends and family to work with him…I am sorry for his family

  10. Angelo Ashmen says:

    If your son/daughter had downs syndrome and someone made a joke about it, you’d probably be offended too. But, the Family Guy video is blocked at work, so I can’t really judge the full context.

  11. JOHN says:

    I AM THE REPO MAN THAT TOOK HIS BENTLEY AND ROLLS ROYCE PHANTOM…..LOL

  12. William SCHOENINGH says:

    Many innocent people are paying for Parker’s crimes. It has put everyone associated with Exim on the hook.

  13. Marge says:

    Parker was my next door neighbor when he got arrested, LOL! He would come to my kid’s lemonade stands and give them like $20. He also had parties a lot. Always knew something was up with this guy. Not gonna lie, it was pretty exciting when the FBI came and picked him up!

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