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Press Release

Former Bank Vice President To Serve Two Years In Prison for Receiving Kickback, Filing False Tax Returns

For Immediate Release
U.S. Attorney's Office, Central District of Illinois

Urbana, Ill. – A former vice-president of the State Bank of Herscher, David Rabideau,  was sentenced today to 24 months in federal prison for receiving a $75,000 kickback for procuring a real estate loan and for two counts of filing false tax returns. U.S. Senior District Judge Harold A. Baker ordered that Rabideau, 44, of Clifton, Ill., be taken immediately into custody by the U.S. Marshals Service for transport to the Federal Bureau of Prisons. Rabideau was also ordered to remain on supervised release for three years following his release from prison, and to pay restitution to the State Bank of Herscher in the amount of $100,000, and restitution to the IRS in the amount of $36,585 for unpaid income taxes. 

Rabideau pled guilty to the offenses on Aug. 11, 2014, and had remained on bond pending sentencing. According to court documents, Rabideau had served as a branch manager, vice president, and secretary of the board of directors for the State Bank of Herscher in Kankakee, Ill. Rabideau also served as one of the bank’s primary loan officers. During court hearings, Rabideau admitted that in 2007, he served as the loan officer for a $500,000 bank loan to a customer to finance the purchase of real estate. Rabideau did not disclose his financial interest in this loan; that he was going to receive a $75,000 kickback from the customer. Following the real estate closing, Rabideau gave the customer a cashier’s check for $75,000 from the State Bank of Herscher, and told him to deposit it into the customer’s bank account.  Rabideau also instructed the customer to write a check in the amount of $75,000, as a “finder’s fee” to Rabideau in connection with the real estate transaction. The same day, the customer wrote Rabideau a $75,000 check drawn on the customer’s business account.

Rabideau further admitted that for tax years 2006 and 2007, he failed to report various income he received. As a result of the understated gross income, Rabideau failed to pay at least $36,585 in income tax due to the government. Income Rabideau failed to report on his 2006 tax return included $16,572 he received as a “silent partner” in a real estate transaction, falsely claimed to be for the “sale of cow,” and a “finder’s fee” of $15,000 from a real estate agent, with the false statement "sale of tractor, antiques, etc.” in the check’s memo line. Rabideau admitted he failed to report additional income on his 2007 tax return, including $9,500 in capital gains from selling shares of Hershare Financial Corporation, the holding company for the State Bank of Herscher, in addition to the $75,000 kickback.

The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General and the Internal Revenue Service, Criminal Investigation Division, investigated the case. Assistant U.S. Attorney Eugene L. Miller prosecuted the case.

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Updated June 23, 2015