stickyimage

Fraud Friday — “They Got Us” CEO of banc-serv Indicted for $10 Million Loan Fraud Scheme”

August 23, 2019

By Caity Witucki
Contributing Editor, Fraud Friday

Fraud Friday — “They Got Us” CEO of banc-serv Indicted for $10 Million Loan Fraud Scheme”

KERRI AGEE Mugshot, Hamilton County, Indiana – 2017-09-03 18:18:00 BWI-BAC .08% or Higher

Allegedly around April 24, 2009, the SBA began to suspect the former president, chief executive officer and founder of banc-serv, Kerri Agee (aka Kerri Agee-Smith), and her co-conspirators were up to something when a banc-serv employee submitted an application for a $62,984 working capital loan. When banc-serv received the loan denial letter, Agee emailed her co-conspirators saying, “they got us.”

According to the Feds the loan denial letter from the SBA read: “the additional working capital would appear to provide the applicant with means necessary to pay down or renegotiate and/or refinance the [bank] debt SBA has previously determined to be ineligible for SBA assistance. As the working capital funds cannot be monitored and the appearance of circumvention of SBA policy appears to exist, we cannot approve the proposed increase in working capital proceeds.”

Allegedly in 2017 the FBI began investigating Kerri Agee and her company. The investigation led authorities to believe that Agee and her co-conspirators had been obtaining SBA guarantees for loans that did not meet SBA’s guidelines and requirements. It is believed that Agee and her co-conspirators ensured the loans would appear to meet SBA lending guidelines by making false statements on loan-guarantee applications and purchase requests. When loans would default, Agee and her co-conspirators submitted the same false statements to ensure blanc-serv would be compensated for the loss.

As a result of the loan fraud scheme, Agee and her co-conspirators allegedly originated $10 million in disbursements which, in reality, were not eligible for SBA guarantees.

A warrant for Agee’s arrest was executed on March 22, 2019. According to the indictment, Agee is being charged with four counts of wire fraud and seven counts of making false statements in loan-guarantee applications and purchase requests.

The case against Agee and her co-conspirators is pending in the Indiana Southern District Court. Agee has not yet been convicted.

Sources:

The United States Department of Justice

Indictment

Read our previous reporting:

Banc-Serv’s Kerri Agee, 4 others Arrested for $10 Million SBA Loan Fraud — March 22, 2019

Kerri Agee out of banc-serv — April 13, 2018

Newtek Forecasts Zero Earnings from banc-serv — November 3, 2017

Banc-Serv Retains Brent Ciurlino, Appoints Karen McHugh EVP — October 19, 2017

Uh Oh, FBI Raids Banc-serv Campus, Locks Doors — October 13, 2017

Newtek Stock Down 10%, Says FBI Executed Search Warrant on Banc-serv — October 13, 2017

4 weeks ago by in . You can follow any responses to this entry through the | RSS feed. You can leave a response, or trackback from your own site.