YOUR BUSINESS AUTHORITY

Springfield, MO

Former bank officials, SBA manager indicted for bank fraud

Posted online
The former manager of the Small Business Administration's Springfield office and two former bank vice presidents are among 16 people indicted in a $10 million bank fraud scheme, the U.S. Attorney for the Western District of Missouri said Wednesday.

In five separate but related cases, the indicted individuals applied for at least 31 fraudulent business loans, ranging from $100,000 to $1.6 million, issued by Pulaski County-based Mid-America Bank and Trust Co. guaranteed by SBA, from January 2005 to January 2007. The loans totaled more than $10.1 million, according to the indictment.

Along with former bank Vice Presidents Richard DeLong and Melinda Reese, former Springfield SBA office manager Larry Steven Aduddle was indicted. Aduddle managed the office March 21, 2005–May 21, 2007. Also among the defendants are businessmen George Spencer and Dennis K. DePriest, both of Ozark.

The indictment alleges that the group of co-defendants used a variety of means to file fraudulent SBA loan applications, both by concealing outstanding debts and lying about the intended use of the loans. The two named bank officials also are accused of making false entries in bank records to conceal loan payouts and past-due loan payments from distressed borrowers.

The indictment charges a total of 185 counts of making false bank entries, making false statements to the bank and to the SBA, bank bribery, bank fraud, misapplication of loan funds, false bank entries and money laundering.

According to previous Springfield Business Journal coverage, DePriest was co-founder and CEO of Third Millennium Industries Inc. in Rogersville, which was at one point a $30 million, publicly traded company before collapsing in mid 2004.

Also according to SBJ coverage, Aduddle was previously indicted by the U.S. Attorney's office in May 2007 for allegedly making false statements on a loan application to Mid-America Bank for a Texas frozen custard stand. That case is pending.[[In-content Ad]]

Comments

No comments on this story |
Please log in or register to add your comment
Editors' Pick

It Takes a Team: ‘The Hub,’ WOW selected for design and construction awards

Collaboration was prominent Nov. 9 at the 33rd annual Salute to Design and Construction Awards.

Most Read
SBJ Live logo
MOST-WATCHED VIDEOS
Mobile First World

“For marketers in this day and age, it’s so important to think about how you are engaging with customers and potential consumers on that mobile device,” says Erika Murray, Global Brand Manager …

App-titude - Tracking Projects with Trello “I like to think of it as a big white board where you can put post-it notes and track your progress on the different stages of a process,” says David Brazeal. Trello allows you to make a list, …
Realities of Medical Malpractice Lawsuits “Medical negligence or medical malpractice cases essentially are a platform for families to bring a lawsuit against a healthcare provider,” says Debbie Dodge, Managing Shareholder at Hall Ansley. …
Never Stop Learning “You’ll know that you’re a trusted adviser when your clients come to you before they make a business decision,” says Tom Jensen, with Connell Insurance, one of Springfield Business …
Beyond the Spotlight - Hinode “One big thing we tried to do was to make it more casual — into a fun family dining experience that everyone could enjoy,” says Cosmo Kwon, Co-Owner of Hinode in Nixa, Mo. The change worked. …