An Iowa banker accused of plotting to defraud a small business with a multi-million dollar plan has pleaded guilty to wire fraud.

Larry Charles Henson, former president of Devenport and former chairman of the Valley Bank in Molin, is expected to be tried on March 8. He has been accused of conspiring with others to transfer millions of dollars from the Valley Bank to the SBA. .

Court records show that Vali Bank is working with a credit institution at Cleve to help Vali provide SBA-supported loans.

According to prosecutors, the company’s founder and president, “Co-conspirators” with Hansen and other Vali Bank employees, has made debtors eligible for SBA guarantees. To do this, it is said that the borrowers are eligible to receive the loans and that they have finally completed the loan application, which includes false statements about the loan repayment.

For example, in September 2011, Valley Bank reportedly attempted to commit suicide in connection with a $ 5 million loan with a large capital for a Kentucky-based business.

Co-conspirators 1 Henson reportedly advised SBA to “do everything possible to ensure that the debtor’s debt is not delayed by more than 29 days.” Valley Bank will provide the borrower with a 90-day repayment. Co-conspirators 1 also called Henson and suggested ways to cover up a loan fraud with SBA.

Shortly afterwards, Coalition-Serra 1 Vice-President of the Valley Bank Andrew Erpelding called and warned that the loan could not be repaid by SBA due to previous payments. It is suspected that Airpelding called Hensen to inform him of the problem, after which the two men called Susan McLaughlin, vice president of Vali Bank, and instructed him to change the bank’s loan reports.

McLalan is said to have met, changing the debtor’s payment history and eliminating any outstanding payments. The bank, together with Co-Conspirator 1, submitted the fraudulent information to SBA as a renewal application.

At the same time, the SBA rejected a request from Valley Bank to repay a $ 4.6 million loan from a Florida company, citing the borrower as collateral for two other existing SBA loans. Co-conspirators 1 are said to have filed a new application for the loan.

With no credit history with that virtual name, he contacted SBA Valley Bank and asked for the payment records and other documents related to the loan. Co-conspirant 1 sent an email to AirPelding explaining that the bank needed to “rewrite” the loan documents to save them all in the virtual name mentioned in the SBA application and then make sure there were no criminal charges in those documents.

The SBA approved the fraudulent application and eventually withdrew the debt to the Federal Agency for $ 2.1 million.

A few months later, in January 2012, Valley Bank attempted to transfer its bankruptcy to another Florida company to the SBA. He tried to do this by renewing his loan through SBA. As part of that amendment, the borrower was asking for $ 5 million, $ 3.7 million to repay the loan, and $ 1.3 million for working capital.

One of the problems with the amendment was that the debtor had a net worth of only $ 408,000. To facilitate SBA approval, Coalition 1 allegedly paid $ 2.2 million in debts, $ 750,000 in savings and more than $ 1 million in assets. Proponents of her case have been working to make the actual transcript of this statement available online.

SBS finally approves $ 5 million loan The SBA lost $ 34 million as a result of the debtor’s innocence.

Hensen was recently charged with one count of wire fraud. He pleaded guilty Tuesday and faces up to 30 years in prison and a $ 1 million fine.

The US Department of Justice announced Wednesday that it is investigating the alleged role of Conspiracy 1 and others in the plot.

A.D. In 2016, the Federal Deposit Insurance Corporation and Henson signed an agreement with the former executive body that issued an injunction banning any further involvement in the affairs of any financial institution.

Published in agreement with Iowa Capital Dispatch. Visit them at iowacapitaldispatch.com

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