Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced that Lee E. Baker, Jr., a resident of Anchorage, pleaded guilty in federal court to 12 counts of making false statements to Denali Alaskan Federal Credit Union (“DAFCU”) in connection with a construction loan worth $9.2 million dollars.

Baker, 57, pleaded guilty before Chief U.S. District Court Chief Judge Ralph R. Beistline.

According to Assistant U.S. Attorney Retta Randall, Baker made false statements to DAFCU while drawing down the proceeds of a $9.2 million construction loan obtained for a proposed 85 unit apartment project, “Bryn Mawr,” located on Northern Lights Boulevard in Anchorage. Baker, as President of Discovery Construction, Inc., submitted 12 draw requests certifying each time that certain work had been completed on the Bryn Mawr project, when actually very little work had been done and the total amount Baker verified as completed was false. The Bryn Mawr project was never completed. As a result of his false statements, approximately $4.3 million was disbursed to Baker by DAFCU before he defaulted on the loan.

Judge Beistline scheduled sentencing for December 4, 2012. The law provides for a total sentence of 30 years in prison, a fine of one million dollars, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant. The defendant remains free on bond pending sentencing.

Ms. Loeffler commends the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, for the investigation of this case.

Source: United States Attorney’s Office-Alaska