IL man sentenced to more than 2 years for bank fraud - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

IL man sentenced to more than 2 years for bank fraud

(Source: Raycom Media) (Source: Raycom Media)
SCOTT COUNTY, MO (KFVS) -

An Illinois man was sentenced to two-and-a-half years for bank fraud.

Roger Allen Strong, Jr., 57, was sentenced on Tuesday, November 28 on one felony count of false statement on a loan application and one felony count of bank fraud.

According to a release from the District Attorney's Office, Strong admitted during his guilty plea in August 2017 that he made false statements on a loan application to get financing in the amount of $2,990,300 for a small business administration guaranteed loan from the First Midwest Bank of the Ozarks in Scott County, Missouri, to The Lock Company, LLC for establishing and operating a lock manufacturing plant in Scott County.

The loan application also contained material false representations as to the purposes to which the loan proceeds would be used. Strong falsely claimed that more than $500,000 of loan proceeds would be used for construction costs. However, after the initial loan disbursement, more than $750,000 in loan proceeds were used to pay off bank loans on unrelated properties owned by other companies.

An SBA Eligibility Questionnaire submitted by Strong during the loan application process specifically and falsely represented to SBA and the First Midwest Bank of the Ozarks that the loan proceeds would not be used to refinance debt.

After the loan was approved, Strong requested that First Midwest Bank of the Ozarks disburse the loan proceeds for operations of The Lock Company, LLC, for the purpose of making locks pursuant to the terms of the loan agreement, when Strong knew that in excess of $600,000 of the loan proceeds were going to be spent for a purpose contrary to the terms of the loan agreement and unrelated to the making of locks by The Lock Company, LLC.

As part of his sentence, Strong is responsible for, and obligated to pay, full restitution to First Midwest Bank of the Ozarks and the Small Business Administration, for all unpaid amounts of the loan.

This case was investigated by the Federal Bureau of Investigation, the Small Business Administration and the Federal Deposit Insurance Corporation. Assistant United States Attorney Paul W. Hahn handled the prosecution for the government.

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