Urbana, Ill. – A Champaign, Ill., real estate developer, Gene T. Hardwick, 72, is scheduled to appear for arraignment on April 27, 2015 in Urbana, following an indictment returned last week charging him with one count of bank fraud related to a $3.9 million loan.
The indictment alleges that Hardwick obtained a $3.9 million bank loan in 2007 to construct a 64-unit apartment building at 611 East Park Street, Champaign. From 2007 into at least 2009, Hardwick allegedly diverted funds from the stated purpose of the loan to fund other projects including approximately $800,000 toward a senior living facility in Tuscola, and additional funds to pay personal expenses such as real estate taxes and credit card bills.
If convicted, bank fraud carries a penalty of up to 30 years in prison and a fine of up to $1 million.
The charge is the result of investigation by the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General. Assistant U.S. Attorney Jason M. Bohm is prosecuting the case.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.