Alan B. Fabian, a Maryland entrepreneur, philanthropist and former Republican fundraiser, pleaded guilty yesterday in Baltimore federal court to a multiyear scheme that the government says defrauded banks and businesses of at least $32 million.
"This is a massive fraud," U.S. District Judge Richard D. Bennett said several times during the two-hour arraignment.
Fabian, 43, had been indicted on 26 counts, including money laundering and perjury in connection with the scheme. He pleaded guilty yesterday to two counts of the indictment after reaching a plea agreement with the U.S. attorney's office.
Fabian could get a maximum of 30 years in prison and be fined as much as $1 million on one count of mail fraud. He could also be sentenced to three years and fined $100,000 for filing a false tax return. Sentencing is scheduled to begin Sept. 22.
The government says Fabian operated his scheme through various Maryland companies and a city philanthropic venture that he started to provide Internet access and training to underserved areas.
He is a former finance committee chairman for Michael B. Steele's U.S. Senate campaign and for Mitt Romney's presidential bid.
"He's here to accept responsibility and come in and give your honor, frankly, a much fuller picture of the crime," Fabian's attorney, James Wyda, told the court. Fabian had previously pleaded not guilty, and a trial date was set.
Fabian, a certified public accountant, offered no apologies or explanations for his actions.
He said little more than a clear and repeated "Yes, your honor."
His days of private jet travel are over. The multiple cars, the yacht, the eight properties in North Carolina and his $1.5 million Hunt Valley home are all subject to forfeiture, according to the court. The judge said Fabian can expect prison time.
Though his attorney said Fabian maintains unspecified "business interests" in North Carolina and Northern Virginia, Fabian is considered indigent by the court. He is represented by the Maryland federal public defender.
Reading from a statement of facts that Fabian acknowledged as true, Assistant U.S. Attorney Tonya K. Kowitz said Fabian bilked millions from banks and business partners through Strategic Partners International LLC and Strategic Partners International Inc., companies he created.
