4 Indianapolis-area Banc-Serv executives sentenced for loan fraud scheme
INDIANAPOLIS — 4 Indianapolis-region smaller business enterprise lending executives were sentenced in federal court for a 13-yr spanning conspiracy to defraud the Small Business Administration (SBA) in connection with its method to assurance financial loans built to tiny organizations.
All of the executives labored for Westfield-based mostly Banc-Serv Companions LLC and were being convicted pursuing a two-7 days jury demo in the U.S. District Courtroom for the Southern District of Indiana.
Kerri Agee, 46, of Carmel, Banc-Serv’s former president, founder, and operator, was sentenced to 68 months in prison.
Kelly Isley, 41, of Westfield, Banc-Serv’s previous main working officer, was sentenced to 57 months.
Chad Griffin, 48, of Carmel, Banc-Serv’s previous main promoting officer, was sentenced to 28 months.
Matthew Smith, 53, of Brownsburg, Banc-Serv’s co-founder and a former director of Bridge Enterprise Bancorp, a lending institution that originated loans with Banc-Serv, was sentenced to 46 months.
The United States Office of Justice (DOJ) mentioned one particular added co-conspirator — Nicole Smith, 44, of Indianapolis — is scheduled to be sentenced on Jan. 7, 2022.
In accordance to the DOJ, Agee, Isley, Griffin and Nicole Smith were each individual convicted of conspiracy to commit wire fraud influencing a economical establishment. Additionally, Agee was convicted of four counts of wire fraud impacting a financial establishment even though Isley and Nicole Smith were convicted of two counts of wire fraud impacting a money establishment.
Matthew Smith was convicted of one depend of conspiracy to dedicate wire fraud.
“Fraud against SBA mortgage plans straight harms taxpayers and undermines the public’s faith in significant local community systems,” claimed Assistant Attorney Standard Kenneth A. Polite Jr. of the Justice Department’s Felony Division. “The Legal Division is committed to prosecuting the offenders who exploit these courses and abuse the community belief.”
In accordance to court docket files and evidence generated at the trial, from approximately 2004 until October 2017, the defendants served originate SBA loans via Banc-Serv on behalf of a variety of economical establishments and creditors. On multiple instances, they fraudulently received these SBA assured loans understanding they would be ineligible.
“Making wrong statements to fraudulently get accessibility to SBA plan cash is deplorable and it is unconscionable that any person would steal from a plan intended to aid tricky-operating People hold their companies afloat,” claimed Acting Particular Agent in Charge Gregory Nelsen of FBI Indianapolis. “The FBI and our associates will continue to operate diligently to discover and pursue these engaged in such unlawful activity and make sure they are no extended in a posture to defraud everyone.”
In addition to their jail sentences, all four defendants were being requested to spend restitution to the SBA. Agee and Isley were being each ordered to spend $2,289,681, Griffin was purchased to spend $685,022, and Matthew Smith was purchased to shell out $1,651,450.