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|Sentences Handed Down in Federal Bank Fraud Case
|Two Knox County residents who pleaded guilty to charges involving them both in a bank fraud scheme will spend the next year in prison.
Records from U.S. District Court in Rock Island indicate that Richard Anderson of Galesburg was sentenced in mid-July to a total of a year and a day in a federal prison on ten counts counts of bank fraud, while Elbea Edward Malone was sentenced in June to a total of 12 months in prison on one county of Bank Fraud, and one Count of Engaging in Monetary Transactions in Criminally Derived Property.
The two were arrested about a year ago following an indictment by a federal grant jury.
Anderson, while owner of Galesburg Livestock Sales, and Malone, while operator of an Abingdon feed lot, engaged in what is called a check kiting scheme in late 2009.
Federal authorities say check kiting is a way to artifically inflate a check account, in this case, by Anderson and Malone writing checks to each other, taking advantage of a float period between when the check is deposited and when the money is actually received.
The two also allegedly provided a phony sales agreement to First Midwest Bank in order to obtain a loan.
The two have been ordered to pay 285-thousand dollars in restitution to Larry O'Hearn as part of their sentences, and both will be on supervised release for two years after they're released from prison.
Malone must voluntarily surrender for prison on August fifth, while Anderson will voluntarily surrender on September 10th. Both, in the meantime, were released on bond.
|07 29 13 by Newsroom
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