The former director and shareholder of Southwest Community Bank,
Richard T. Gregg said Monday he’s a changed man who should be released from jail while he awaits trial on 25 counts of money laundering and bank, wire and bankruptcy schemes.
During a hearing held yesterday, Gregg appeared before Magistrate Judge David Rush in a federal court to present arguments for release. In July, the U.S. Attorney’s Office added eight bankruptcy fraud charges to Gregg’s 17-count indictment returned in February 2013. In all, Gregg faces four counts of bank fraud, 10 counts of money laundering, two counts of wire fraud and nine counts of bankruptcy fraud. According to the indictment, Gregg’s personal bankruptcy case showed he held assets valued at $145 million against debts of $325.5 million. Gregg could face up to 265 years in prison and fines up to $7.25 million if convicted on all counts, according to
Springfield Business Journal archives.
While Gregg’s public defender, David Mercer, yesterday said the former banker and business owner would pose no threat to the public, U.S. Attorney Steven Mohlhenrich said Gregg could potentially face four new charges based on recorded conversations Gregg has had with visitors while in custody.
“His entire life, Mr. Gregg has not been in custody, and now, frankly, it has rocked his world,” Mercer said during the afternoon hearing, adding the roughly two months in jail have been humbling and transformative. “He will not put his freedom at risk again.
“The change is found in the quiet of his cell.”
Mohlhenrich presented evidence of four potential crimes involving Gregg that investigators only became aware of after the banker was taken into custody. One involved concealing bank accounts at CU Community Credit Union; a second centered around a Toyota FJ Cruiser registered to Gregg that his son is said to drive; a third revolves around a conversation Gregg had with a friend whom he directed to take private property out of his residence being foreclosed upon; and a fourth involved the potential sale and lease of a property once owned by Gregg.
“He has continued the pattern of behavior that got him (in trouble) in the first place,” Mohlhenrich said during the hearing.
Mercer disputed each instance, saying evidence of the crimes was lacking, but Mohlhenrich noted the point was to rebut arguments of Gregg’s jailhouse transformation.
Rush will weigh arguments and is expected to render his decision shortly, saying he would base the decision on whether Gregg continues to pose an economic threat to the community – the reason the former banker was detained without bail.[[In-content Ad]]
