Opinion ID: 2756545
Heading Depth: 3
Heading Rank: 2

Heading: The Scheme to Defraud Begins

Text: Starting in 2003, Hulse attempted to secure loans from various lenders with the representation that he controlled a large portfolio of bonds that could serve as collateral. Hulse, however, did not in fact own such a bond portfolio during the relevant period. None of these prospective loans went through. More than one of the loans fell through, at least in part, because Hulse never produced verification to the lender that he actually owned or controlled any bond portfolio. Defendant Teers and Mock made multiple statements to the prospective lenders, including through letters and other documents, supporting Hulse’s false representation that he owned a substantial bond portfolio. For instance, Hulse faxed to one prospective lender seventeen pages of printouts from the Bloomberg system that appeared to include Teers’s name as the original sender. Brokerage firms use the Bloomberg system to obtain information about publicly traded securities, and Teers had access to Bloomberg and used it routinely. The Bloomberg printouts related to eight of the nine bonds listed on a forged brokerage statement earlier sent to the lender by Hulse that purported to show G&H’s ownership of nine bonds worth a total of $28 million.