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Olah formally sentenced for Powerhouse Gym fraud

10 months ago Thursday, May 29, 2014 2:49:38 PM CDT May 29, 2014 Thursday, May 29 2014 May 29, 2014 in News
Source: WBRZ

BATON ROUGE - A federal judge formally sentenced one of the organizers of the defunct Powerhouse Gym in Baton Rouge for their part in a fraud to get money for the business.

District Judge James Brady sentenced Ronald Olah, 35, to eight months in a halfway house and two years probation for his role in the gym scheme.

A grand jury indicted Olah and a co-defendant, Matthew Scott Bernard, in May 2013 for bank fraud, wire fraud, and making false statements to a bank. The indictment accused the pair of lying to banks in 2011 about their finances and the condition of they gym they were trying to open, and got several loans by doing so.

The gym's original opening date was delayed by more than a year, during which time the organizers still collected members and their fees. Some people sank hundreds of dollars into the gym, whose owners were evicted and sued by the Attorney General.

Bernard pleaded guilty to bank fraud on Aug. 14, 2013, and Olah pleaded guilty to wire fraud on Nov. 5, 2013.

Olah must also pay restitution in the amount of $575,242.82, and forfeit an additional $325,343 in proceeds from the scheme.

Bernard was previously sentenced to serve 41 months in federal prison for his role in the scheme.

 

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