Couple guilty of loan fraud

The Daily Inter Lake

Two former Whitefish residents have been convicted of scamming area banks to obtain car loans and then, in some cases, defaulting on the payments.

Brett Tate, 44, pleaded guilty to one count of wire fraud and Jane Tate, 42, pleaded guilty to two counts of bank fraud during a change-of-plea hearing Wednesday in U.S. District Court in Missoula.

Between March 2004 and April 2007, the Tates attempted to fraudulently obtain car loans from banks or dealerships in Kalispell, Whitefish and Bozeman with fake income statements and fake credit references.

At a Bozeman car dealership, Brett Tate misrepresented his income and employer, according to federal court records. Jane Tate used fraudulent documents to obtain car loans from banks in Kalispell and Whitefish.

After the couple failed to make scheduled payments, the banks repossessed the vehicles at a combined loss of $18,700.

In June, the Tates - who also are listed as part-time residents of Wise River, Mont. - had pleaded not guilty to eight counts of bank and wire fraud.

Prosecutors had accused the couple of scamming $186,000 from private individuals.

Brett Tate allegedly told one man he could obtain $5 million in financing for an oil exploration company upon the payment of an up-front "processing fee" of $75,000.

Another man was told the Tates represented an investment group using a large Texas ranch as collateral for a loan and that the bank required $11,000 in appraisal costs.

A third man gave the Tates $100,000 to obtain a $10 million loan with the promise he could get $200,000 back when the loan was received.

Brett Tate faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.

Jane Tate could face up to 30 years in prison, five years of supervised release and a $1 million fine.

The Tates, both of whom have been released on special conditions, are scheduled to be sentenced in March.