Ex construction leasing CFO jailed for equipment fraud

The former CFO of a leasing company active in the construction market has been given a prison sentence for operating a fraudulent equipment leasing scheme that saw two financial institutions lose more than $1.6 million.

Bart Witsman was the CFO at Vermeer (Tennessee), Inc., which specialized in the leasing, renting, servicing and selling of heavy construction-type machinery, and operated several stores in Tennessee, with the main store located in Murfreesboro.

An FBI investigation found that between November 2007 and March 31, 2009, Witsman devised a scheme to defraud and to obtain money from Citicapital and Central Leasing by causing Vermeer (Tennessee) to purchase equipment from various manufacturers, and sell the equipment for a profit.

Witsman then obtained loans from Citicapital or Central Leasing on behalf of Vermeer (Tennessee) in the amount of the original purchase price of the equipment that had already been sold. Witsman then used the equipment as collateral for the loans and deceived Citicapital and Central Leasing into believing that the equipment was still in the custody and control of Vermeer of Tennessee.

In court, Witsman pleaded guilty to seven counts of wire fraud and five counts of money laundering. He has been sentenced to 44 months in prison, to be followed by a three year term of supervised release, and also ordered to pay restitution of more than $1.6 million.