Michigan pharmaceutical exec pleads guilty to providing false financial documents for bank loan

(CBS DETROIT) – A Michigan man pleaded guilty after he admitted to submitting false documents to a financial institution related to a bank loan, the U.S. Attorney’s Office announced.

Officials say Theodore Toloff, 65, of Northville, worked as chief financial officer at Frank W. Kerr. The company had a credit agreement with two financial businesses, allowing it to borrow up to $60 million based on Kerr’s eligible accounts receivable and inventory.

Toloff told authorities that he falsified documentation, which included $18 million ineligible accounts receivable and Kerr borrowed additional funds after the documents were submitted.

He faces a maximum of 30 years in prison.

“The defendant admitted to providing false documents to a financial institution, undermining the law and integrity of our financial systems,” Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan said in a press release. “The FBI works tirelessly with our partner law enforcement and regulatory agencies to investigate those who commit financial crimes. We urge the public to submit tips on alleged crimes such as those detailed in this case to 1-800-CALLFBI (1-800-225-5324) or online at www.tips.fbi.gov.”