Elgin man faces prison, $1M fine after admitting bank fraud

An Elgin man faces up to 30 years in prison and $1 million in restitution after pleading guilty to bank fraud, money laundering and giving false testimony in a bankruptcy case.

Stephen T. Angerman, 48, pleaded guilty before U.S. District Judge Frederick J. Kapala, who will issue Angerman's sentence on Oct. 3.

In his guilty plea, Angerman admitted to fraudulently obtaining loans of $510,000 and $64,590 between December 2009 and March 31, 2010, to buy a home on Wrenwood Circle in Elgin. Angerman submitted bogus bank statements, pay stubs, W-2 forms and statements about his assets and liabilities to land the $510,000 loan from a credit union.

He also pledged a 2008 Chevrolet Corvette as collateral for the $64,590 loan from a bank without disclosing that there was a $40,000 lien on the vehicle held by a different bank, according to prosecutors.

In the guilty plea for money laundering, Angerman also admitted that on March 23, 2010, he transferred $64,500 that he received from the bank loan from his credit union checking account to an account of a relative at yet a different bank in an attempt to hide his crime, prosecutors said.

Angerman filed for bankruptcy in January 2011, and, in a February 2011 hearing, lied under oath in a creditors' meeting that he didn't own the Corvette or the home on Wrenwood Circle, prosecutors said.

The most severe charge of bank fraud carries a top prison term of 30 years and a fine of up to $1 million. He also is subject to a civil penalty of twice the value of the property involved in the transaction.