Account at bank fictitious

knowing that both financial institutions wanted assurance that the two men collectively had at least $5 million in liquid assets.

In reality, no such Wells Fargo account existed, and the bank statement was a forgery, Saldaña’s statement said. Sarwal and Yeo admitted they submitted the false statement with the intent to defraud the banks.

Sarwal and his attorney, Russell Soloway, could not be reached for comment Thursday.

Chris Gunter, Yeo’s attorney, said his client “regrets ever having gotten involved with Mr. Sarwal.”

Gunter said Yeo “reached out to the government early on in their investigation and cooperated with the government in helping them understand — and the court understand — what happened,” Gunter said.

According to the U.S. Attorney’s Office, U.S. Bank and Texas Capital Bank approved the $39 million construction loan based in part on the fraudulent bank statement, closing on it on Dec. 30, 2008. Between January 2009 and June 2010, when the banks foreclosed on the loan, Sarwal and Yeo made more than $33 million in draws on the loan.

Evidence at sentencing established that the fraud was more encompassing than the false bank statement, Saldaña’s statement said. To secure the loan, Sarwal and Yeo also falsely represented to the banks that 53 percent of the office space had been leased when only 12 percent had been. The fraud continued throughout the project, prosecutors said, with both Sarwal and Yeo submitting fake invoices to justify large draws from the loan and by taking steps to obtain fake cell phone numbers for the nonexistent tenants.

Sarwal filed for bankruptcy in 2011. His vision for University Park never materialized. The one office building that was constructed on the site is owned by Spear Street Capital. Tenants include the Longhorn Network and an Aveda cosmetology school and retail store.

Cypress Real Estate Advisors owns the bulk of the land at the 23 acre site, and has begun construction of an apartment complex with 298 units.