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Archive for Wednesday, April 14, 2004

Developer gets prison for fraud

Wichitan also ordered to repay $4.62 million

April 14, 2004

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— A Wichita businessman was sentenced Tuesday to 70 months in prison, authorities said.

Richard Boushka, 69, also was ordered to pay $4.62 million in restitution by U.S. District Judge Wesley E. Brown.

Most of that money, about $3.3 million, will go to shareholders of American Bank, U.S. Atty. Eric Melgren announced. Another $1.17 million in restitution will go to O'Connell Engineering and Financial Inc.

The remaining $150,000 will go to others defrauded by Boushka.

Boushka also was sentenced to five years of supervised release.

Boushka, an original partner in The Woodlands racetrack, entered a guilty plea on Dec. 2, 2002, to two counts of bank fraud, one count of making a false statement to obtain a loan and one count of omission of material information in the sale of a security, Melgren said in a news release.

At his plea, Boushka admitted that from March through September 1998 he schemed to obtain money from American Bank by false pretenses, Melgren said.

Boushka, owner of Ovelle Holdings Inc. in Wichita, used false loan documentation to obtain loans from American Bank knowing neither he nor his company had the ability to repay them, Melgren said.

He also admitted that he made false statements and purposefully overvalued collateral to obtain a $10 million loan from American Bank.

In September 1999, he obtained $1.5 million from O'Connell Engineering and Financial as part of an international banknote trading program. He signed a personal guarantee without telling the company he had a substantial negative net worth and that his personal guarantee was of no monetary value, Melgren said.

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