Former Kansas Bank Executive Indicted In $15M Bank Loan Fraud Scheme

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division announced Friday a former Bank executive from Kansas was charged for his participation in a $15 million bank fraud scheme.

Judge And JuryFifty-year-old Troy A. Gregory of Lawrence was a loan officer and bank executive who allegedly made “millions of dollars in loans to a group of borrowers who were struggling to make payments on the loans.”

Gregory made a construction loan valued at $15.2 million to that same group of borrowers. The loan for an apartment complex was shared with 25 other banks in Kansas.

The defendant and others, under the direction of the defendant, made false statements about the debt status of the property, and existence of about $1.7 million in “certificates of deposit for collateral on the loan” and the strength of the borrowers, according to the indictment.

Once the loan was made, Gregory diverted more than $1 million to pay off debt on the property, make payments on unrelated loans and pay for part of the certificates of deposit pledged as collateral.

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