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.

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Allison Tussey

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