Man guilty of embezzling $ 1.4 million now charged with SBA loan theft
WEST CHESTER, PA – A West Chester man who was convicted in December of embezzling $ 1.4 million from a group of homeowners’ associations is now charged with fraudulently obtaining $ 1.25 million of Small Business Association loans.
The Chester County Attorney’s Office today charged William C. Huyler III, 42, of West Chester, with theft by deception, forgery and related charges for fraudulently obtaining Small Business Administration (SBA) loans from the Wilmington Savings Fund Society, for a total of $ 1.25 million.
Huyler was convicted of stealing $ 1.4 million in another case being pursued in Chester County. In December 2020, he pleaded guilty to stealing $ 1.4 million from eight Homeowners Associations (HOAs) located in Chester County, Montgomery County, New Jersey and Delaware.
Huyler is awaiting conviction in Chester County in this case. The details of the criminal complaint for the new charges show that the crimes are intertwined.
District Attorney Deb Ryan said: “The defendant’s greed is unprecedented. He took advantage of a multitude of victims and betrayed their trust for his own financial gain. Our detectives worked tirelessly over the course of the process. for the past two years to account for all of his illegal activities. My office will hold him accountable for every dollar and prosecute him with all the force of the law. “
The prosecutor’s complaint against Huyler alleges that he applied to WSFS for a $ 750,000 SBA loan which he obtained with a life insurance policy of the same amount, as of May 2017, as as the principal owner of East Hill Property Manangement, LLC (EHPM).
The criminal complaint alleges that Huyler falsely portrayed EHPM as a successful property management company that deals with HOAs in the area looking to expand.
Huyler predicted profits of more than $ 500,000 for the first year and $ 900,000 for the second year, according to the complaint. He allegedly presented false financial documents and false income tax returns to substantiate his claim. These documents have shown significant past and future growth for EHPM. In fact, the company had become so unprofitable by early 2017 that Huyler embezzled nearly $ 1.4 million from its HOA customers, according to the criminal complaint.
The terms of the $ 750,000 loan specified that the funds were to be used to refinance existing First Home Bank debt, building improvements and nearly $ 300,000 in working capital. The loan was approved on August 29, 2017, according to the state prosecutor’s report.
The report goes on to say that the next day the defendant applied for a second SBA loan to fund two new businesses, East Hill Real Estate and Creighton Financial. Since both were start-ups, no earnings reports were included in the app, only projections.
The defendant would have secured this loan with a second lien on his residence in West Chester. The residence already had an $ 845,000 lien against it, and the defendant was successful in securing another $ 155,000 mortgage with the BOFI Federal Bank after WSFS completed its title search, the criminal complaint states.
The SBA’s $ 500,000 loan was approved on April 12, 2018, according to the DA report.
Huyler was released on unsecured $ 250,000 bail.
Its preliminary hearing is set for March 17, at 11 a.m.
Retail Chester County Lt. Robert Dougherty led the investigation. Prosecutors Ron Yen and John McCaul are assigned to the case.
Anyone with further information regarding this investigation is asked to call Chester County Detectives at 610-344-6866.