OFFICE OF THE UNITED STATES ATTORNEY
WESTERN DISTRICT OF MISSOURI
Contact Don Ledford, Public Affairs ● (816) 426-4220 ● 400 East Ninth Street, Room 5510 ● Kansas City, MO 64106
FEBRUARY 22, 2010
FOR IMMEDIATE RELEASE
ARKANSAS BUSINESS OWNER PLEADS GUILTY
TO MAKING A FALSE STATEMENT
TO A FINANCIAL INSTITUTION
SPRINGFIELD, Mo. – Beth Phillips, United States Attorney for the Western District of Missouri, announced today that the developer of a Hollister, Mo., subdivision has pleaded guilty in federal court to making a false statement in his application for a business loan that was actually for the benefit of others.
James David Boothe, 49, of Lead Hill, Ark., pleaded guilty before U.S. Magistrate Judge James C. England on Friday, Feb. 19, 2010. Boothe was the president and owner of Tri-Lakes Interiors, Inc., and owner of Bandit Construction, LLC. Boothe was the developer of the Valley View Heights subdivision in Hollister.
Boothe admitted that he received a $300,085 loan from Mid America Bank & Trust Company in Dixon, Mo. The stated purpose for the loan was for business expenses of Tri-Lakes; in reality, however, the loan was actually made to benefit two other persons. After receiving the loan, Boothe directed most of the proceeds be transferred to another person “for work complete,” when in fact that person performed no work. Boothe also directed some of the proceeds be transferred to a business for “services,” although the business performed no work for Boothe.
Under federal statutes, Boothe is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $1 million and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Small Business Administration – Office of Inspector General and the Federal Bureau of Investigation.
This news release, as well as additional information about the office of the United States Attorney for the Western District of Missouri, is available on-line at