United States Attorney Mary Beth Buchanan announced today, July 25, 2006, that Darrell Walker Holloway, a resident of Penn Hills, Pennsylvania, has been sentenced in federal court in Pittsburgh to twelve months and one day imprisonment, followed by three years supervised release, on his conviction of conspiring to launder money and stealing monies from the Pension Benefit Guaranty Corporation (PBGC).
Senior United States District Judge Maurice B. Cohill imposed the sentence on Holloway, age 33, of Penn Hills, Pennsylvania.
According to information presented to the court by Assistant United States Attorney Carolyn J. Bloch, Holloway, during the period November 23, 1998 through January 31, 2001, participated in a conspiracy to launder the proceeds of a wire fraud scheme perpetrated against banks and other lending institutions. The scheme involved obtaining $2,000,000.00 in loan proceeds via the submission of false loan applications on real properties titled in the names of Holloway and others. Holloway and other co-conspirators agreed, for a fee, to place properties in their names and then sign and submit loan applications to American Business Mortgage and other lending institutions which were materially false as to employment, income, assets, and other information. The fees paid to Holloway came from the proceeds of the fraudulently obtained loan proceeds.
Holloway was concurrently sentenced for having unlawfully converted to his own use, a check issued by the PBGC in the amount of $18,896.93, and made payable to an individual identified as A.J., the person entitled to such pension benefits. On June 3, 2004, Holloway deposited the PBGC check into his personal bank account.
Prior to imposing sentence, Judge Cohill stated that the one-year term of imprisonment provided for a proper punishment and was fair in light of the seriousness of the offenses, Holloway's role in the criminal activity, and the level of cooperation he provided.
Ms. Buchanan commended the Internal Revenue Service, the United States Postal Inspection Service, and the Pension Benefit Guaranty Corporation for the investigation leading to the successful prosecution of Holloway.
