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Former Aide to McNall Facing Federal Charges : Jurisprudence: Orehek accused of helping conspirators fraudulently obtain loans.

From Associated Press

A former top aide to King President Bruce McNall has been charged by federal prosecutors with conspiracy and wire fraud in connection with a grand jury investigation into McNall’s business dealings.

Joanna Orehek, former vice president and controller of McNall’s chief holding company, McNall Sports and Entertainment Inc., was charged with helping unidentified conspirators fraudulently obtain more than $100 million in loans from three lenders, the Los Angeles Daily News reported Sunday.

The charges came Thursday in the form of a 15-page criminal information. McNall was not named in the complaint.

Orehek is charged in part with creating false tax returns and financial statements overstating McNall’s net worth to induce banks to make loans, the paper reported.

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Prosecutors claim that in January of 1990, Orehek and her conspirators began a four-year-long conspiracy to defraud banks of millions of dollars in loans to McNall and his companies.

Assistant U.S. Attorney Peter Spivack said additional charges probably will be filed in connection with the investigation. He did not elaborate. A telephone at Spivack’s office rang unanswered Sunday.

Orehek is expected to enter a guilty plea to charges of conspiracy, wire fraud and aiding and abetting when she is arraigned on Monday, Spivack said. She could face up to 10 years in prison on such a plea, he said.

Federal subpoenas served on McNall in April show the federal grand jury is conducting a far-reaching investigation into almost every aspect of his business activities.

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