Ex-Lehman Broker Arraigned in Cleveland
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Frank Gruttadauria, the Lehman Bros. Holdings Inc. broker who turned himself in to authorities Saturday, sent statements inflating the value of his customers’ accounts by $277million, a criminal complaint said.
Gruttadauria, 44, was arraigned in federal court in Cleveland. He was charged with making false statements on a National City Bank credit application.
He applied for a $6-million revolving line of credit Dec. 18 at a National City Bank branch, the complaint said.
The security for the credit came from a Lehman account the broker claimed was worth $13.2 million but actually was worth just $6.55.
The broker pulled more than $1million from the credit line, the complaint said, before disappearing Jan. 11.
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