Matthew R. Shurts, 42, Beloit, Kansas, pleaded guilty to defrauding a bank for misrepresenting the extent of his collateral.
The defendant pleaded guilty to one count of bank fraud. In his plea, he admitted he provided false information when he applied for a loan from the Bank of Tescott. On July 19, 2013, he showed representatives of the bank 71 cows, 71 calves and eight bulls the he claimed were his and would serve as collateral on his loan. In fact, he owned only 17 of the cows and 17 of the calves.
On August 1, 2013, he filed a financial statement with the bank representing that he had 70 cow/calf pairs and six bulls worth a total of $152,000. In fact, he had 13 cow/calf pairs valued at a total of $26,000. In December 2013 he told bank representatives he had sold cattle and would be paying off some of his loan. He wrote a check for $53,000 that did not have sufficient funds on account to clear.
Sentencing is set for December 22. He faces a maximum penalty of 30 years in federal prison and a fine up to $1 million.
U.S. Attorney Barry Grissom announced the guilty plea. Grissom commended the FBI and Assistant U.S. Attorney Richard Hathaway for their work on the case.