Loan Officer Lends $740,000 To Fictitious Person
Brian Russell Nutter, 35, was employed as a loan officer at Boone County National Bank when he made a loan to Lee Johnson, a fictitious individual representing a fake company, Diamond Lift Company. The loan actually went to John T. Sobaski, former owner of Big Cedar Custom Design and Fabrication, a provider of motorcycle racing equipment.
Nutter left Boone County National Bank to work as a loan officer and vice president of Boone National Savings and Loan Association (BNSL) in June 2002. Nutter moved the Sobaski loans with him.
While employed as a loan officer at BNSL, Nutter continued to make fraudulent loans with Sobaski. The proceeds from these fraudulent loans were used to pay prior loans made to Sobaski and his business, Big Cedar, which had gone into default.
On December 18, 2003, Nutter made a $350,000 loan to Sobaski to consolidate all the previous loans made to Big Cedar. Although the loan was approved based upon the guarantor signatures of Sobaski’s in-laws, their signatures were forged and they never signed as guarantors on the loan.
The loan became delinquent in 2004, sparking an investigation within the bank.
In addition to the fraudulent loans involving Sobaski, Nutter committed bank fraud against BNSL regarding Matthew Morgan, another bank client. Nutter admitted to forging client signatures on extension loans and altering financial statements by clients to ensure loan approval by his supervisors. Nutter admitted that he made a loan for Matthew Morgan, a friend, and that Nutter and Morgan sat down together and created a financial statement and altered Morgan’s stock worth to ensure loan approval.
The scheme resulted in a loss of more than $740,000 for Boone National Savings and Loan Association in Columbia.
Nutter was sentenced by U.S. District Judge Nanette K. Laughrey on Tuesday, July 8, 2008, to 15 months in federal prison without parole. The court also ordered Nutter to pay $748,866 in restitution.
Sobaski, was sentenced on Jan. 24, 2008, to two years and six months in federal prison without parole after pleading guilty to bank fraud. The court also ordered Sobaski to pay $326,318 in restitution.
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Tags: Loans