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Molnar Sued Over "Diverted Fees"

 
Molnar Sued Over
Posted Friday, November 8th 2013 @ 5am

Federal court records show that a Chillicothe businessman is being sued for illegally diverting money from a low-income housing tax credit program into a management company account he created while running the program.

Huntington Bank filed the federal lawsuit October 31st against Joseph P. Molnar, who helped operate the bank's program between 2008-2012. Molnar is accused in the suit of diverting $2.7 million in development advisory fees through 38 separate transfers over a four year period to an account named "J. Property Management".

The fees were intended as compensation for the bank's management of the tax credit investment program.

Bank officials in their complaint, say they discovered the scheme as they reviewed documents for a tax credit project that did not have a development advisory fee. In that matter, Huntington says J. Property Management received a $128,000 development agent fee even though the project agreement didn't mention it.

Huntington Bank is asking the court for an injunction, which would prevent the alleged stolen funds from being moved or spent, and wants a court order requiring the money to be deposited with the court.

The suit in the U.S. District Court for the Southern District in Columbus, before Judge Algenon L. Marbley. The suit claims Molnar committed "fraud, conversion, civil conspiracy as well as other claims".

The case is listed as Huntington National Bank et al. v. Joseph P. Molnar et al. case number 2:13-cv-1087.

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