Ex-Bank President Pleads Guilty in $3.6 Million Straw Borrower Scheme
July 11, 2025
Bob Coleman
Founder & Publisher
Ex-Bank President Pleads Guilty in $3.6 Million Straw Borrower Scheme
“Every American citizen deserves to walk into their bank and trust the people behind the counter. The defendants in this case violated that trust through schemes aimed to self-serve and increase wealth,” said FBI Agent Karen Marinos.
Frank Eversman, a former bank president, and his brother-in-law, real estate developer Greg Crawford, have both pled guilty to a decade-long scheme involving straw borrowers and fraudulent loan documents. The two orchestrated at least 30 fraudulent real estate loans totaling $3.6 million throughout 2011-2020, according to the Department of Justice.
The scheme centered on recruiting unqualified borrowers, known as straw borrowers, who were put forward as loan applicants on properties actually controlled by Crawford. These straw borrowers often had poor credit, insufficient income, and no ability to qualify for loans. By using them as fronts, Crawford hid his ownership from both the bank and regulatory authorities.
Eversman, in his role as senior loan officer at Tempo Bank, knowingly helped push these fraudulent loans through the approval process. The defendants fabricated loan applications and documents, including inflated property appraisals and fake lease agreements, to make it appear the properties were generating sufficient rental income to support the loans. Crawford claimed the funds were for property renovations, but instead, the loan proceeds were diverted for other purposes.
When regulators audited the bank, they flagged these suspicious loans. In response, Crawford sent a straw borrower to provide false information to investigators, further obstructing the audit.
The bank did not lose money on the loans, which were eventually repaid. However, federal prosecutors argue that the use of straw borrowers concealed the true risk of the loans from regulators and undermined the integrity of the financial system.
Both men waived their right to a grand jury indictment and pled guilty to conspiracy to commit bank fraud, which carries penalties of up to 30 years in prison, supervised release, and substantial fines. The prosecution seeks a prison sentence of about four years, citing the total amount involved and the systemic risk posed by the scheme. The defense, emphasizing Eversman’s age and the lack of direct financial loss to the bank, argues for a lighter sentence of zero to six months. The judge will decide sentencing in October.