Former Loan Company Officials Charged With Fraud

Posted: Updated:
INDIANAPOLIS -

Five former officers and employees of an Indiana loan packaging and servicing company have been indicted in federal court. The U.S. Department of Justice says the charges stem from an alleged 13-year-long conspiracy to defraud the U.S. Small Business Administration.

The charges involve Kerry Agee, the former co-founder, president and chief executive officer of Banc-Serv Partners LLP, along with co-founder Matthew Smith, former chief operating officer Kelly Isley, chief marketing officer Chad Griffin and employee Nicole Smith-Kelso. The indictment alleges the defendants helped originate SBA loans on behalf of various financial institutions from 2004 to 2017 and, on multiple occasions, fraudulently obtained guarantees for loans that the SBA had deemed ineligible. 

When a fraudulently-guaranteed loan defaulted, the defendants allegedly caused other employees to transmit requests to the SBA to purchase the defaulted loans, shifting the losses to the SBA. In all, the defendants allegedly originated loans totaling more than $10 million in disbursements. 

Each defendant is facing one count of conspiracy to commit wire fraud affecting a financial institution and one count of conspiracy to make false statements in loan-guarantee applications and purchase requests. Everyone except for Matthew Smith also face additional charges of wire fraud and making false statements in loan-guarantee applications and purchase requests.  

The case was investigated by the SBA Office of Inspector General, the Federal Deposit Insurance Corp. Office of Inspector General, and the Federal Bureau of Investigation.

  • Perspectives

    • The First Thing Nonprofit Boards Should Focus On: Member Engagement

      There is no shortage of literature on how to run a nonprofit and what the board of directors should be doing. Do a quick search for “grant writing advice” or “board meeting agenda” and you will easily find hundreds of resources. But if there is so much helpful information around, why is serving on a nonprofit board sometimes so draining? After founding two nonprofits, Musical Family Tree and the Speak Easy, as well as serving on several nonprofit boards...

    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • (photo courtesy The Times of Northwest Indiana)

      Hammond Pulls 135 Jobs from Illinois

      A Hammond factory recently vacated by Michigan-based Lear Corp. didn’t sit empty for very long. Midland Metal Products has taken over the former seat factory, having relocated from Chicago after 95 years. 

    • Gateway Park will lead into the downtown district.

      Plans For New Muncie Facility Halted

      Plans for a $75 million project at the former BorgWarner site in Muncie have come to a halt.  Nigel Morrison, director of Waelz Sustainable Products LLP says “a campaign of misinformation tainted the process and ultimately made it impossible for the city council to continue supporting the project.” The project was first announced in January and was slated to create up to 90 new jobs. The announcement follows the opposition of Muncie residents who...

       

    • ‘Transformation’ Continues in Westfield

      Indiana’s fastest growing city is showing no signs of slowing down.  Mayor Andy Cook says now that Westfield has established itself as a destination for family sports with the Grand Park Sports Campus, the $35 million Grand Junction Plaza will transform the city’s downtown into a destination, a place “where people want to be.”   Cook says the project, more than a decade in the making, is an example of a place making strategy necessary for Midwest...
    • Elanco is headquartered in Greenfield.

      Elanco to Acquire Bayer AG Animal Health Business

      Greenfield-based Elanco Animal Health Inc. (NYSE: ELAN) has entered into an agreement with Bayer AG (ETR: BAYN) to acquire its animal health business in a deal valued at $7.6 billion. If approved, it would double Elanco’s Companion Animal business and create the second-largest animal health company by revenue. “Joining Elanco and Bayer Animal Health strengthens and accelerates our IPP strategy, transforms our portfolio with the addition of well-known pet brands, brings...

    • Corn, Soybean Groups Name New CEO

      The the Indiana Soybean Alliance Indiana Corn Marketing Council and the Indiana Corn Growers Association have named a new chief executive officer. Courtney Kingery is currently global director of Health & Wellness Innovation for Chicago-based Tate & Lyle and has experience as a grain trader and marketing director for oilseeds and food ingredients for ADM.