Four executives convicted in SBA fraud case

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Four Indiana executives formerly associated with the now defunct Banc-Serv Partners LLC were sentenced to jail in federal court this week. The government alleged that all four were associated with a 13-year conspiracy involving loan guarantee programs.

According to the Small Business Administration (SBA): Kerri Agee, 46, of Carmel, Indiana, president, founder and owner of Banc-Serv, was sentenced to 6.5 years in federal prison; Kelly Isley, 41, of Westfield, Indiana, the former director of operations for Banc-Serv, was sentenced to just under five years in federal prison; Chad Griffin, 48, of Carmel, Indiana, former marketing manager for Banc-Serv, was sentenced to just over two years in federal prison; Matthew Smith, 53, of Brownsburg, Indiana, co-founder of Banc-Serv and former director of Bridge Business Bancorp, was sentenced to just under four years in federal prison.

The agency said in a press release that an “additional co-conspirator”, Nicole Smith, 44, of Indianapolis, is expected to be sentenced on January 7, 2022.

They were convicted of conspiring to commit wire fraud affecting a financial institution, according to the government.

The agency said in its post-conviction press release: “The defendants fraudulently obtained SBA-guaranteed loans on behalf of their clients, knowing that the loans did not meet SBA guidelines and requirements for Guarantees. Evidence at trial showed that from around 2004 until October 2017, the defendants helped create SBA loans through Banc-Serv on behalf of various financial institutions and other lenders. fraudulently obtained SBA guarantees for loans they knew were ineligible.

The government alleged that it carried out the scheme by distorting the intended purposes of the loans and withholding information about the borrowers that allegedly disqualified them.

The SBA said in its press release that the authors have taken steps to transfer bad debts from private lenders to the government.

Deputy Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division said in a prepared statement: “Fraud against SBA loan programs directly harms taxpayers and undermines public confidence in the SBA’s loan programs. important community programs. The Criminal Division undertakes to prosecute offenders. who operate these programs and abuse the trust of the public.

Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation said in a prepared statement: Government to pay delinquent loans. We remain committed to working with our law enforcement partners and investigating those who seek to exploit federal programs and undermine the integrity of our nation’s banks. “

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