SHREVEPORT, LA (KSLA) – A Bossier City businessman was found guilty of bank and bankruptcy fraud by a federal grand jury Thursday.
62-year-old William R. Hayes was convicted of defrauding the First Louisiana Bank and later committing bankruptcy fraud by submitting false statements regarding his business and the income from his business. The jury reached its verdict after two-and-a-half days of trial and two hours of deliberation.
Hayes is the owner of Fire Security Systems, Inc.
In a press release from the U.S. Attorney's Office, court testimony showed Hayes filed for Chapter 7 bankruptcy in February of 2004. Prosecutors said Hayes financial affairs statement contained false information and documentation even though he signed off that the paperwork was true.
Prosecutors showed that Hayes was the founder and owner of a commercial fire sprinkler company and had invested money in another commercial fire sprinkler company even though he reported that he had no interest in any business.
The release also says First Louisiana Bank rejected the bankruptcy filing when it found out that Hayes fraudulently used or spent $158,000 that was supposed to be used as collateral for a loan.
Hayes faces up to 30 years in prison on the bank fraud charge and up to five years in prison on each of the four bankruptcy fraud charges. He'll be sentenced on March 2 of next year.