An Accra based businessman, Mr George Washington, was yesterday arrested by the East Legon Police for attempting to defraud a financial institution.

He is charged for attempting to use his private car as collateral to obtain two different loans from the UT Bank and Ideal Financial Limited.

Speaking to the Ghana News Agency in Accra on Wednesday, the Legon District Police Commander, Superintendent Frank W. Anning said Mr George Washington went to one of the UT Banks in Accra and applied for a loan apparently for his business.

He therefore used his vehicle, a Toyota Lexus with registration No. GW 328-10 as a collateral at the Bank and he succeeded in raising a loan of GHC23,000.00.

Unknown to Mr George Washington, the UT Bank had transferred all the documents on his car at DVLA into the name of UT Bank Accra.

Mr Washington however, was not able to pay back all the money he borrowed from the UT Bank, so he quickly approached another financial institution, Ideal Financial Limited, at East Legon for a loan of GHC9,000.00.

While processing the second loan he used the same vehicle as collateral.

The officials of Ideal Financial Limited went to DVLA to verify the ownership of the vehicle and were told that the vehicle with registration No. GW 328-10 was in the name of UT Bank Accra.

Mr Washington was then arrested and handed to the East Legon Police for further investigation.

Commander Anning said the culprit has been charged with fraud and would be arraigned for prosecution after investigations.