June 15, 2015
By Bob Coleman
Editor, Mug Shot Monday
How else to describe the relationship between a banker and his borrowers that resulted in five guilty pleas for bank fraud?
It appears the banker didn’t benefit financially as he crossed the line trying to bail out his borrowers by approving loans to straw borrowers to pay his borrower’s delinquent loans.
Mike and Aric Manning’s loans were classified substandard in 2003 due to late, insufficient, or absent loan payments.
With their credit cut off, Iowa Trust and Savings, Senior Vice President, Richard Jones approved new loans of $112,000 to straw borrowers so the Mannings could make payments on their existing loans.
Richard did the same thing with Russ and Sue Salton for $365,000 beginning in 2004.
It all came crashing down in 2010 when an audit revealed the fraudulent loans.
And it gets worse.
Next time you sign SBA’s Form 1920, take a minute and read your what you are signing. In particular note, “I certify that I have complied and am familiar with SBA Loan Program Requirements, that I have accurately and correctly completed the Lender’s Application for Guaranty for All 7(a) Programs on behalf of the Lender, that the above information is true and correct, to the best of my knowledge, and that I have exercised due diligence to obtain the true and correct information.
Richard was charged with four counts of bank fraud, one count of identity theft, and one count of making a false statement to the SBA.
Reads the indictment;
On or about November 20, 2009, defendant Richard Jones made materially false statements to SBA with the intent to influence SBA in the administration of its loan program. In connection with a $900,000.00 SBA guaranteed loan (#3663715008), defendant Richard Jones knowingly and falsely certified “there are no liens or encumbrances against the real or personal property secm·ing the loan except those disclosed in the application for this loan. . . .” In truth and in fact, defendant Richard Jones well knew when he made the certification, that a truck (i.e., a 2003 Ford F-550) listed as security within the referenced SBA loan was already encumbered as collateral on a previous ITSB loan (i.e., loan number 53524901 in the name of L.S. and originated by Rick Jones). This was in violation of Title 15, United States Code, Section 645(a), and Title 18, United States Code, Section 2.
Richard Jones pled guilty last week to bank fraud. In his plea deal Jones agreed that he could be sentenced to a maximum of 80 years in prison without the possibility of parole.
Sentencing hearing dates for Jones, The Mannings and Saltons have not been scheduled.