Litigation

From White Collar Crime Fighter: Why would the founder of a successful financial institution steal from it - risking all?

By Tracy Coenen

The former CEO of the First National Bank of Northern Kentucky was indicted in connection with a $4.5 million fraudulent loan scheme that he allegedly facilitated. Richard Thomas, who founded the bank in 1992, was charged with conspiracy to commit bank fraud and aiding and abetting the submission of false loan applications.

Details: According to court documents, one of Thomas?s longtime bank customers introduced him to John and Linda Van Winkle and Thomas subsequently began acting as their personal banker and the banker for their two businesses. Those ?businesses,? Design Services and Koolsuit Inc., held patents for air-cooled bullet-proof vests and race-car driver suits. The patents, the value of which was undetermined, were nonetheless used to secure several of the 19 fraudulent loans made to the Van Winkles as well as to Ms. Van Winkle?s two daughters, one of whom was a fulltime law school student at the time. (more…)

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Full post as published by The FRAUDfiles Blog on February 13, 2008 (boomark / email).