
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, April 11, 1991                   TAG: 9104110668
SECTION: VIRGINIA                    PAGE: B-8   EDITION: EVENING 
SOURCE: Associated Press
DATELINE: ALEXANDRIA                                LENGTH: Short

HERNDON MAN GUILTY OF LOAN SCHEME

A Herndon man faces up to 15 years in prison and fines of $750,000 for his conviction on mail, wire and securities fraud for running a "ponzi" loan scheme over the past eight years.

According to court documents, William F. Harkay borrowed large sums from people at interest rates ranging from 45 percent to 100 percent a year. He then falsely promised the lenders their money would be used to buy inventory for his businesses and that the money was secured by insurance on that inventory. The money was then used to pay interest to previous lenders, leading others to make him further loans, the documents said.

Harkay pleaded guilty Wednesday.

U.S. District Judge Albert V. Bryan Jr. set sentencing for June 14.

by CNB