Eastern Kentucky man gets prison time after pleading guilty in federal bank fraud case
A Morgan County man who pleaded guilty to a count of bank fraud will report to the Federal Bureau of Prisons in November to begin serving his sentence.
Richard Rednour, a former real estate agent, was sentenced to five months in federal prison in September after he pleaded guilty to a charge accusing him of taking on more than $1 million in debt and using illegally-obtained loans to try to cover costs.
He was also ordered to pay nearly $170,000 in restitution, according to court records, and will be on probation for five years.
Rednour previously faced five charges of fraud and money laundering after he got nearly $170,000 in bank loans under false pretenses so that he could pay back debts to other people and cover shortfalls in business accounts, according to court records.
He accepted a plea deal in May that dismissed four of his other charges. He was indicted in September 2022.
The plea agreement states that in December 2018, Rednour applied for a loan through the First National Bank of Grayson and falsely stated his purpose for the loan was to pay credit card debt and operating expenses for a contract between his business and the Kentucky Housing Corporation.
However, Rednour intended for the loan proceeds to cover a shortfall in his real estate escrow account, according to court documents. Rednour also provided false financial statements in support of his loan.
Rednour claimed he owned real estate worth $975,000 and that he owed $500,000 on a loan related to the property. In actuality, Rednour’s interest in the real estate was through a land contract he agreed to purchase for $1 million and would pay in monthly installments. When he submitted the loan, he had more than $900,000 left on the land contract, according to court documents.
In addition, Rednour owed thousands of dollars in loan principal to people he had borrowed money from, according to court documents. He purposely hid this on his loan application.
“The defendant had the intent to deceive or cheat FNBG for the purpose of either causing a financial loss to another or bringing about a financial gain to himself,” court documents read.
If he had been convicted of all five charges, Rednour faced up to 60 years in prison.
