A Zachary businessman was sentenced to 12 years in federal prison on fraud charges after admitting in court that he obtained more than $29 million from banks and private equity firms by making false statements.

Michael Allen Worley, 60, was also sentenced to serve 3 years of supervised release after his term has ended and was ordered to pay more than $15 million to his various victims.

Worley is the former chief executive officer of Worley Claims Services and the owner of several businesses, including holding company, W Resources LLC, a bar, a bed and breakfast and a sporting goods store.

He schemed to defraud both banks and private equity firms by submitting multiple fraudulent loan applications on behalf of himself and his businesses, according to admissions made as part of his guilty plea. 

Worley obtained more than $27 million in new loans from federally-insured banks between 2014 and 2018, using materially fraudulent statements. He also obtained at least an additional $13 million from private equity firms in Louisiana and Texas by the same means.

Throughout the course of his bank and wire fraud schemes, Worley inflated his assets, understated and omitted his liabilities and misrepresented his income, prosecutors said.  

Worley and the businesses he controlled defaulted on some of the loans from the banks and private lenders, causing them to suffer financial losses. He filed for Chapter 11 bankruptcy in January 2018.