Mug Shot Monday – Bank CEO Responds to SBA Loan Fraud Indictment
December 16, 2013
By Bob Coleman
Editor, Coleman Report
“I’m writing today because neither I nor my employees have done anything wrong.”
That is the opening statement Arkansas-based HomeBank CEO wrote to the Log Cabin Democrat in response to his 11 count bank fraud indictment on December 4th.
Federal prosecutors allege John Stacks unfairly profited from a SBA disaster loan he received after a tornado destroyed property and equipment at his water bottling plant.
Writes Stacks, “We have complied with instructions and requests of FEMA and the SBA at every turn, and we have a great amount of paperwork documenting our efforts to resolve this matter … The Indictment filed this week is very vague, and to be perfectly honest, we’re not exactly sure what it is alleging. If it’s attempting to claim that I unfairly profited from the tornado, nothing could be further from the truth.
“I am a principal owner of a financial institution, and I know that bankers are under tremendous scrutiny, and bankers who also own other businesses even more so.
“All of my payments on this loan have been made on time, and after an IRS special audit following the raid last year, it was acknowledged in writing that my tax returns are complete and correct.”