Yao sentenced to 5 year in prison

February 6, 2009 6:36:54 PM PST
Federal prosecutors say the former chief executive of Student Finance Corp. has been sentenced to five years in prison for fraud. Forty-seven-year-old Andrew Yao of Bryn Mawr, Pa., also was ordered on Thursday to pay restitution of more than $12 million and is subject to forfeiture of $1 million.

Yao pleaded guilty in June to a 10-cout indictment charging him with seven counts of making class statements to a financial institution and other offenses.

Prosecutors say Yao got loans totaling more than $40 million while he was president and sole shareholder of Student Finance, which has been in bankruptcy since 2002.

Authorities say Yao hired a now-dead accountant to prepare fraudulent personal tax returns for himself and Student Finance.

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