Federal prosecutors on Friday announced charges against theowner of a legal benefits company for allegedly defrauding multiple lenders out of $30million.

Gary Alan Frank, 47, of Philadelphia, was charged by criminal complaint with one count ofwire fraud by the U.S. Attorney's Office for the Eastern Districtof Pennsylvania.

Frank allegedly defrauded several prospective lendersthrough his business, the Legal Coverage Group Ltd., whichcontracts with employers that offer their employees a legal plan aspart of their employee benefits plans, prosecutors said ina statement Friday.

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“In late 2014 Frank secured a $30 million loan from two lenders,Prudential Insurance Co. of America and Prudential RetirementInsurance and Annuity Co. (collectively, 'Prudential'), by makingvarious false representations regarding the size and revenue of theLegal Coverage Group's business. After obtaining these funds, Frankand the Legal Coverage Group continued to deceive Prudential andother lenders, including various individuals,” prosecutorssaid.

“When the relationship between Prudential and the Legal CoverageGroup soured in 2017, Prudential sued the Legal Coverage Group andFrank in New York state court,” prosecutors said, “Soon afterPrudential brought this suit, Frank caused counsel for the LegalCoverage Group to provide fraudulent bank documents to Prudential.For example, on or about Oct. 11, 2017, Frank caused the LegalCoverage Group's counsel to email a false September 2017 bankaccount summary to Prudential's attorney. The false account summaryfor the Legal Coverage Group reflected an ending balance of$1,526,322.12, even though the actual ending balance for thisperiod was approximately $13,114.24.”

While the New York litigation was ongoing, prosecutors said,Frank allegedly had an attorney with Legal CoverageGroup deliver three additional false Bank of Americaaccount summaries to a lawyer for Prudential.

Additionally, on Jan. 26 of this year, Frank allegedly filed afalse Chapter 11 bankruptcy petition for Legal Coverage Group inPhiladelphia federal court, according to prosecutors. Prosecutorsalleged that during the time of the bankruptcyproceedings, Frank “made and caused others to make additionalmaterial misrepresentations regarding the Legal Coverage Group,until at least March 1, 2018, when the government executed acourt-authorized search of the company's premises.”

If Frank is convicted on this count, he faces up to 20years in prison, three years of supervised release, and a $250,000fine.

Frank's attorney, Robert Welsh of Welsh & Recker, said onFriday “he's cooperating with the authorities by returning assetsand participating in interviews.” He added that the cooperation waspart of the conditions for Frank's release and that there was noplea deal on the table.