Grand Jury Adds Tax Charges in Superseding Indictment of Former Bank Officer in Kanakee County
Urbana, Ill. – A former loan officer and bank vice president, David Rabideau, 42, of Clifton, Ill., faces additional charges after a federal grand jury returned a superseding indictment yesterday that charges him with two counts of filing a false income tax return and a single count of making a false bank entry. The grand jury previously charged Rabideau in July 2012, with the illegal receipt of money for procuring a loan and money laundering.
The first indictment, filed in July 2012, alleged that in 2007, Rabideau corruptly received $75,000 as a kickback in connection with a real estate loan while he was employed as a loan officer and vice president of the State Bank of Herscher, in Kankakee county, Ill., and then used more than $10,000 of the proceeds in a financial transaction.
In addition to the original charges, the superseding indictment charges Rabideau with filing false income tax returns for the 2006 and 2007 tax years. Specifically, the indictment alleges that Rabideau omitted more than $50,000 he received as income in 2006, which should have resulted in an adjusted gross income of approximately $196,733 instead of the $143,988 reported in Rabideau’s 2006 return. As a result, the indictment alleges Rabideau should have paid additional tax of $16,334 for the 2006 tax return. For the 2007 income tax return, the indictment alleges that Rabideau omitted more than $120,000 in income, which should have resulted in an adjusted gross income of approximately $244,462 instead of the $156,860 reported in Rabideau’s 2007 return. As a result, Rabideau allegedly should have paid $39,854 additional tax for the 2007 return.
Rabideau is also charged with making a false bank entry in 2010, related to a $100,000 line of credit advance from the State Bank of Herscher to a friend’s business. Rabideau allegedly approached the friend to obtain a loan after Rabideau was instructed by the bank to repay the $75,000 he had allegedly received in connection with a loan in 2007. To hide the purpose of the draw from the line of credit, Rabideau instructed a bank employee to record that the loan was to “purchase golf car batteries.” According to the indictment, on Nov. 1, 2010, Rabideau’s friend wrote Rabideau a business check for $75,000, which Rabideau deposited into an account at another bank, and then allegedly wrote a check to the State Bank of Herscher to repay the bank $75,000.
The charges are the result of an investigation by the Internal Revenue Service Criminal Investigation Division; the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General; and, the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
A status hearing is currently scheduled for Rabideau to appear before U.S. District Judge Michael P. McCuskey in Urbana, Ill., on June 19, 2013. The U.S. Clerk of the Court will issue a summons for Rabideau to appear for arraignment on the additional charges.
If convicted, for the offense of accepting a kickback for procuring a loan, the maximum statutory penalty is up to 30 years in prison; for money laundering, the maximum statutory penalty is ten years in prison; for making a false bank entry, the penalty is up to 30 years in prison; and for each count of filing a false tax return, the statutory penalty is up to three years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
James A. Lewis
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