Fresno man facing $1M in fines, prison for alleged bank fraud and tax evasion, say feds

A 42-year-old Fresno man was arrested Friday, accused of scamming more than $1 million and not paying taxes.

A federal grand jury indicted Kenneth Shane Patterson on eight counts of wire fraud, bank fraud and tax evasion, according to a release from the U.S. Attorney’s Office in Fresno.

If convicted, Patterson faces a maximum combined sentence of 55 years in prison and more than $1 million in fines.

According to count documents, Patterson received $1 million from a small business owner in Southern California that he said would be used to clear liens and pay expenses on a deal to buy a skilled nursing facility in Pasadena.

He would then sell the facility to the business owner at well-below market value.

But, Patterson was never going to buy the facility and spent the money on other business ventures and personal expenses, court documents say.

Patterson is also accused of defrauding Bank of America by depositing bad checks into a business account.

The checks, written from a separate account at another bank, totaled more than $230,000, which Patterson transferred and spent before Bank of America realized the checks had bounced, the release says.

Additionally, the indictment says Patterson evaded paying federal income taxes by not having personal bank accounts, incurring expenses on accounts not in his name and dealing excessively in cash. The evasion dates back to 2003, according to the indictment.

This story was originally published November 1, 2019 at 11:21 AM.