Banker Admits Lying to Obtain $850,000 Loan

Allison Tussey —  July 1, 2014 — Leave a comment

Michael W. Yancey, 55, Olathe, Kansas, pleaded guilty to conspiring to make false statements on a loan application while he was working as a senior vice president of a bank in Overland Park, Kansas.

The defendant pleaded guilty to one count of conspiracy to make false statements on a loan application. Yancey was charged via criminal Information on May 19, 2014.

In his Plea, he admitted the crime took place while he was working as a senior vice president and commercial lender at Farmers Bank & Trust, N.A., Overland Park, Kansas, which is headquartered in Great Bend, Kansas.

Yancey conspired with another person to obtain and maintain a business loan of $850,000 from Farmers Bank for two companies by falsely representing the terms of a real estate purchase in Basehor, Kansas.

He falsely represented to the bank that the property’s purchase price was $1.1 million when in fact it was $850,000. The false information made it appear the loan conformed to a maximum 75 percent loan-to-value ratio when in truth the loan was approximately 97 percent of the purchase price. He also falsely stated that the loan involved a seller carryback of $150,000 and a borrower equity injection of $125,000.

Sentencing will be set at a later time. He faces a maximum penalty of five years in federal prison and a fine up to $250,000.

U.S. Attorney Barry Grissom announced the guilty plea.

Grissom commended SIG-TARP (Office of Inspector General for the Troubled Asset Relief Program), the FBI, the U.S. Department of Labor and Assistant U.S. Attorney Jabari Wamble for their work on the case.

Allison Tussey

Posts Google+

No Comments

Be the first to start the conversation.

Leave a Reply

Text formatting is available via select HTML.

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>