Lawyer pleads guilty to Batesville bank fraud - KAIT Jonesboro, AR - Region 8 News, weather, sports

Lawyer pleads guilty to Batesville bank fraud

LITTLE ROCK, AR (KAIT) – A Little Rock attorney Wednesday pleaded guilty in federal court to a $47 million bank fraud scheme involving a Batesville bank. 

According to the U.S. Department of Justice, at a plea hearing held in federal court, Kevin Harold Lewis admitted that between December 2008 and September 2010, he sold approximately $23 million worth of special improvement district bonds to First Southern Bank.

Prior to the purchase of each bond, Lewis said he provided the bank with documents describing the details of the bond.

At the plea hearing, Lewis acknowledged the bonds were fraudulent.

Sometime around August 2009 Lewis purchased a controlling interest, approximately 53 percent, in the bank.  To facilitate the purchase, he borrowed $4.6 million from First State Bank in Lonoke.

According to the federal court documents, in September 2010 Lewis purchased an additional $5.5 million in First Southern stock which increased his ownership to 64.9 percent.  To facilitate this purchase he used funds from the sale of two fraudulent bonds to First Southern Bank.

After learning of the status of the bond sales, First Southern Bank was forced into FDIC receivership. 

Several other financial institutions provided loans to Lewis which were collateralized, in whole or in part, by fraudulent bonds including:  Centennial Bank, Citizens, Liberty Bank, First Community, Allied, Simmons, and Regions Bank.

The U.S. Attorney for the Eastern District of Arkansas says Centennial Bank and Bank of Augusta currently hold fraudulent bonds originally sold by Lewis.

The intended loss amount in the case is approximately $47 million.

Lewis faces as much as 30 years in prison and a fine of $1 million dollars.  He is currently free on his own recognizance awaiting sentencing.

 

Copyright 2011 KAIT. All rights reserved.

 

  • Region 8 News</span><a class="customMoreLink" href="/Global/category.asp?C=4391" target="_top">More >></a>Region 8 NewsMore>>

  • Foundation to adopt a family for Christmas

    Foundation to adopt a family for Christmas

    Tuesday, November 21 2017 11:40 PM EST2017-11-22 04:40:57 GMT
    Tuesday, November 21 2017 11:55 PM EST2017-11-22 04:55:13 GMT
    (Source: Keeunna Watson)(Source: Keeunna Watson)

    A foundation in honor of a Jonesboro who died from epilepsy is finding a way to serve another family in need for Christmas.

    A foundation in honor of a Jonesboro who died from epilepsy is finding a way to serve another family in need for Christmas.

  • Family safely makes it out of house fire in Matthews, MO

    Family safely makes it out of house fire in Matthews, MO

    Tuesday, November 21 2017 11:47 PM EST2017-11-22 04:47:04 GMT
    source:  Raycom Mediasource: Raycom Media

    According to an official with the Matthews Volunteer Fire Department, a family was inside the home when the fire started in an upstairs bathroom.

    According to an official with the Matthews Volunteer Fire Department, a family was inside the home when the fire started in an upstairs bathroom.

  • Combating depression during the holidays

    Combating depression during the holidays

    Tuesday, November 21 2017 11:23 PM EST2017-11-22 04:23:14 GMT
    Tuesday, November 21 2017 11:41 PM EST2017-11-22 04:41:49 GMT
    (Source: KAIT)(Source: KAIT)

    The holiday season is usually a time of happiness and enjoyment with family and friends, but that can be different for some suffering from a mental health illness.

    The holiday season is usually a time of happiness and enjoyment with family and friends, but that can be different for some suffering from a mental health illness.

Powered by Frankly