Former Bank Executive Found Guilty in $15 Million Fraud Scheme

A former Kansas bank executive has been found guilty for his role in a $15 million construction loan fraud scheme.

Troy A. Gregory, 52, was found guilty of four counts of bank fraud and two counts of false statements Monday in front of a federal jury. The loan scheme reportedly took place through at least 26 different banks in the state of Kansas.

As an executive for an undisclosed bank, Gregory reportedly made the money giving out loans to those who were struggling to pay previous loans. Beginning in approximately late 2007, Gregory began the process of making a $15.2 million construction loan to build an apartment complex to that same group of borrowers. He then made false statements to other banks about the strength of the borrowers, the debt status of the apartment property and the existence of approximately $1.7 million in certificates of deposit for collateral on the loan, all to get the loan approved.

Gregory’s sentencing is set for January of 2020.

Source: Former Bank Executive Found Guilty in $15 Million Construction Loan Fraud Scheme | OPA | Department of Justice

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