A fake state letter was used to get COVID-19 break on loan. Kentucky bank caught on.
A Lexington man is facing federal charges after he was accused of committing bank fraud and identity theft, according to court records.
Vonnie J. McDaniels is accused of fabricating a letter from a state official in an effort to get a loan forbearance from Kentucky Bank, according to his indictment.
McDaniels is also accused of submitting to Kentucky Bank falsified financial records that misrepresented his assets and liabilities, according to the indictment.
McDaniels applied for a commercial loan in early April 2019 from Kentucky Bank, according to bank records. The loan was to help in the purchase of a property on Leawood Drive in Frankfort.
When McDaniels got the loan, the Leawood Drive property was being leased by the state. He is accused of submitting fraudulent records to Kentucky Bank in an effort to get the loan, according to his indictment.
In August of 2019, Kentucky Bank issued a $382,500 loan to McDaniels and his business, according to court records.
In March of this year, McDaniels falsely reported that the state was still leasing the property, the indictment alleges. McDaniels is accused of requesting loan forbearance and providing a fabricated letter from a leasing manager with the Kentucky Finance and Administration Cabinet saying that the state’s leasing payments had been suspended because of COVID-19, according to the indictment. The state had ended the lease in December of 2019.
If convicted of the two counts of bank fraud and one count of identity theft, McDaniels could face up to 32 years in prison and a $1 million fine, according to his indictment.
This story was originally published September 15, 2020 at 9:03 AM.
