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Banks (Finance)

Bank Fraudster Sentenced to 27 Months in Prison

Strategic Insights

— 1 min read

Vonnie McDaniels, a 32-year-old resident of Lexington, Kentucky, was sentenced to 27 months in federal prison on Monday by Chief U.S. District Judge Danny C. Reeves. McDaniels was found guilty of bank fraud and aggravated identity theft after obtaining a $382,500 commercial loan from Kentucky Bank in August 2019 under false pretenses. The loan proceeds were used to purchase an office building in Frankfort, Kentucky, which was leased by the Commonwealth of Kentucky. McDaniels falsified financial records and other information to secure the loan, and later requested loan forbearance in March 2020, falsely claiming that the state had suspended rent payments due to the COVID-19 pandemic.

Key Takeaways:

  • McDaniels was convicted of bank fraud and aggravated identity theft for obtaining a $382,500 commercial loan from Kentucky Bank in August 2019 using falsified financial records and other information.
  • The loan proceeds were used to purchase an office building in Frankfort, Kentucky, which was leased by the Commonwealth of Kentucky.
  • McDaniels requested loan forbearance in March 2020, falsely claiming that the state had suspended rent payments due to the COVID-19 pandemic.
  • The state terminated the lease in December 2019.
  • McDaniels must serve 85 percent of his 27-month prison sentence, and will be under the supervision of the U.S. Probation Office for three years upon release.
  • The investigation was conducted by the FBI and FDIC-OIG.
  • The United States was represented by Assistant United States Attorney Paul McCaffrey.

Statistics:

  • McDaniels was sentenced to 27 months in federal prison.
  • The loan amount was $382,500.
  • The loan was obtained in August 2019.
  • The office building in Frankfort, Kentucky, where the loan proceeds were used, was leased by the Commonwealth of Kentucky.

Sources:

  • FBI
  • United States District Court for the Eastern District of Kentucky
  • Federal Bureau of Investigation, Louisville Field Office
  • Federal Deposit Insurance Corporation, Office of Inspector General
  • Assistant United States Attorney Paul McCaffrey (representing the United States)

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