After defrauding $1.4 million over 16 years from the Ashland bank where he was a vice president and loan officer, a Catlettsburg man pleaded guilty Monday.
Martin Ross, 52, pleaded guilty to one count of bank fraud in U.S. District Court in Ashland. Court documents said Ross used fake names and documentation to obtain loans through Town Square Bank.
For example, on July 28, Ross obtained a loan in the name of Steven Parker for $125,000, the plea deal said. To get the loan, Ross created all the documentation needed to issue the loan, including false tax returns, credit reports and a brokerage account statement.
Ross withdrew $107,177.01 from the loan, a court document said.
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Ross engaged in similar fraudulent transactions for another four fictitious clients. He would transfer the proceeds from fraudulently obtained loans to pay on other fraudulent loans or to pay his personal debts and expenses, according to court documents.
The total loss to the bank, which is federally insured, was $1,415,082. The scheme to defraud the bank began in May 2000 and continued through July. The plea agreement listed 15 loans from 2007 through Aug. 31. The loan amounts ranged from $20,625 to $245,785.
In the plea deal, Ross agreed to sell his 2008 Mini Cooper and 2015 Nissan Pathfinder and forfeit the proceeds to assist in satisfying a money judgment of $1.4 million.
Ross was arrested by Ashland police in September after the bank discovered and reported that Ross had processed loans for fictitious clients.
U.S. District Judge David Bunning scheduled sentencing for Ross on April 16 in Ashland. The maximum penalties that could be imposed are 30 years in prison, a $1 million fine and three years of supervised release.
Until sentencing, Ross remains free on bond.