A Cave City-based trader in antiques and rare collectibles who has appeared professionally on television as Kentuckyana Jones was indicted Wednesday on five counts of bank fraud.
Hagan and Hammer each face two counts of bank fraud. Hughes is charged with a single count of bank fraud.
Federal prosecutors allege that Barrick involved his three co-defendants in schemes from 2007 to 2012 in which Barrick-owned properties were sold to buyers who had received loans based on false information they had provided to banks about their assets and income.
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Hammer is identified in the indictment as a loan officer with Monticello Bank and a “longtime acquaintance” of Barrick who helped him commit bank fraud on two occasions.
One allegation involved Barrick recruiting a person identified as “T.P.” to buy Som’ Beach Tanning at 140 River Place Avenue, directing T.P., who was applying for a loan from the bank, to submit false information in 2010 in a financial statement to Monticello Bank regarding his assets.
Hammer failed to verify the information in the financial statement and failed to verify a handwritten income and expense summary for the business that had been provided by Barrick, according to the indictment.
“The loan was to be collateralized by Som’ Beach Tanning’s equipment, but Barrick had already used that equipment as collateral on a separate December 2009 loan from BB&T Bank,” the indictment said. “The BB&T Bank loan was not satisfied at the time of the closing of T.P.’s loan.”
Hammer approved the loan application, and T.P. bought the tanning salon from Barrick in 2011 for $100,000, according to the indictment.
“Barrick used the proceeds of this sale to make two unrelated delinquent loans current,” the indictment said. “After the loan closed, T.P. received approximately $5,000 in cash from Barrick for participating in the transaction but never assumed control of the business.”
Federal prosecutors claimed that this loan was paid off with proceeds from another loan thought to have been fraudulently obtained.
That second loan, according to prosecutors, involved Barrick recruiting a person identified as R.R. to buy and be a “silent partner” in Mattress City Wholesale in Madison, Tenn., with Barrick telling R.R. that he would run the business and make all the loan payments from sale proceeds.
The building in Madison was occupied by a PetSmart store that Barrick didn’t own or operate, and Hammer persuaded a bank associate to combine his $80,000 loan authority with Hammer’s $100,000 loan authority to enable Hammer to authorize and approve R.R’s Mattress City Wholesale loan without approval from other bank employees, according to the indictment.
R.R. then bought Mattress City Wholesale in 2011 for $179,880 and was paid $30,000 by Barrick for his participation in the purchase, while Barrick and Hammer used a portion of the sale proceeds to pay off the Som’ Beach Tanning loan without informing J.P., according to the indictment.
“After the (Mattress City) loan closed, Barrick made approximately eight loan payments before the loan went into default on Feb. 27, 2012,” the indictment said.
Barrick is also accused of recruiting Hagan between 2007 and 2010 to buy a property in Glasgow and another property in Bowling Green.
For the loan to buy the Glasgow property, Hagan is accused of providing false information in a personal financial statement to American Bank and Trust, allowing him to obtain a mortgage from the bank. Hagan then bought the property from Barrick in 2008 for $575,000, with Barrick receiving $574,009.50 from the sale and giving Hagan $60,400.
After the mortgage closed, Barrick made the monthly payments either directly or by reimbursing Hagan until the mortgage went into default on Nov. 29, 2010, according to the indictment.
For the Bowling Green property, Hagan is accused of giving false information about his income, assets and anticipated lease income to PBI Bank in a credit application. The bank approved Hagan for a mortgage and he bought the property from Barrick in 2008 for $300,000, with Barrick receiving $237,283.63 from the sale, the indictment said.
Barrick then paid Hagan $6,534 for participating in the transaction and entered into a similar payment arrangement on the mortgage before it went into default in 2010, according to authorities.
Hughes is alleged to have been recruited by Barrick to buy a Wholesale Mattress Warehouse business in Elizabethtown at an address that Hughes and Barrick knew actually was the location of a McDonald’s.
Barrick is accused of directing Hughes to provide a financial statement to Monticello Bank in 2011 that included false information about her assets.
Additionally, Hughes “submitted a forged letter to Monticello Bank, which contained false statements regarding her employment and job title,” leading the bank to approve a loan for Hughes.
According to the indictment, Hughes bought the business from Barrick in 2011 for $179,000, with Barrick making monthly payments on the loan before it went into default in 2012.
Barrick appeared as Kentuckyana Jones in 2014 on the A&E series “Barry’d Treasure” with Barry Weiss, who spent episodes traveling the country in search of rare collectibles and antiques.
In July, it was announced that a new show, “Kentuckyana Jones: Extreme Treasure Hunter,” showcasing Barrick’s exploits at finding collectibles and his charitable work with veterans, would be available on channels on streaming digital-video provider Roku starting in September.
Barrick also owns the Mammoth Museum Group and had secured a grant from the Cave City Tourist and Convention Commission in August to market the Mammoth Museum Group, a museum dedicated to his treasure hunt finds that he plans to open next year in the site of a former wax museum, according to published reports.
A request for comment was sent Wednesday to an email address that appears on Kentuckyana Jones’ website.
Federal court records do not list an attorney for Barrick or the other co-defendants.
Barrick, Hammer and Hagan are scheduled to appear in U.S. District Court in Bowling Green on Nov. 23 for an initial appearance and arraignment, according to court records.
Each count of bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine.