Owners of Burbank recording studios plead guilty to fraud
Two brothers who own two Burbank-based recording studios have agreed to plead guilty to conspiracy to commit loan fraud after reportedly scamming three banks out of $1.7 million in loans to fund their music business, officials announced Friday.
The Salazar brothers – Matt, 29, and Jason, 28, of Valley Village and Grover Beach, respectively – admitted to providing false documents to Bank of America, Greystone Bank and Huntington National Bank to secure $1.7 million in loans, according to the U.S. Attorney’s Office.
The brothers -- who co-own Matt Salazar Recording Productions, and hold a stake in LA Sound Gallery -- used the loans to bolster their businesses, prosecutors say.
If convicted, the Salazars face five years in federal prison, according to the U.S. Attorney’s Office.
In addition, the front man of Los Angeles-based rock band Lights Over Paris was charged with falsifying documents to obtain loans, and allegedly used the Salazars’ studio to bolster his loan applications, officials said.
Robert Mawhinney, who goes by Robb “TaLLLLL” University onstage, was arrested this month after allegedly applying for loans by submitting phony statements claiming he had close to $8 million in assets.
Mawhinney, 30, allegedly falsely claimed to co-own the Salazars’ studio when meeting with a Comerica Bank loan officer.
Between August 2009 and April 2011, Mawhinney allegedly swindled Comerica Bank into giving him four loans totaling roughly $6.25 million.
Investigators claim Mawhinney used the loans to pay for travel, entertainment and a luxury tour bus.
-- Alene Tchekmedyian, Times Community News
Follow Alene Tchekmedyian on Google+ and on Twitter: @atchek.