Two residents of the Henry County area are now in federal prison after they pleaded guilty in 2023 and 2024 to what federal prosecutors claim was a scheme defrauding local banks out of loan money.
The U.S. Attorney’s Office says 46-year-old Eric Jones of Colona, and 38-year-old Mitchell Melega, formerly of Orion, each got more than six years in prison followed five years on parole after they pleaded guilty to multiple counts of Bank Fraud, Conspiracy to Commit Bank Fraud, and Money Laundering. This, after they were both indicted in October 2020.
The sentences were issued Tuesday.
Prosecutors claimed the two provided false documents to First Midwest Bank in Moline in order for the bank to provide loans to I-80 Equipment in Colona, the company for which Jones was the owner and Melega was the controller.
The two also allegedly ordered other employees to do the same.
Jones and Melega also diverted real estate loan proceeds from a bank in Davenport for an apartment complex Jones owned, to other uses including to his family and to I-80 Equipment.
It also involved more than 100 vehicle purchases — leading a judge to reportedly believe the scheme was “particularly sophisticated.”
According to media reports, I-80 Equipment refurbished bucket trucks before reselling them. It was the victim of a fire in 2018, two months after Jones had filed for bankruptcy.
