Real estate tycoon with deep political ties convicted of bank fraud

Politically connected San Francisco real estate tycoon Victor McRath was found guilty Friday of bank fraud and making false statements to banks.

Federal prosecutors have persuaded jurors that McRaras defrauded mortgage lender Quicken Loans into a $1.3 million real estate loan to Harlan Kelly, former chairman of the Public Utilities Commission.

Prosecutors alleged that in order to get more money at a lower interest rate, Macrath mistakenly inflated the amount of debt Kelly owed to Macrath’s real estate investment firm by $200,000.

At the same time, Macrath hid other debts Kelly owed, including a $70,000 personal loan from Macrath.

A $715,000 loan to Macrath’s real estate firm and his personal loan to Kelly were repaid with Quicken Loans money, prosecutors said.

The jury could not reach a consensus on whether McCrath conspired with Kelly to defraud Quicken Loans and make false statements to the bank.

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