Grand Jury Charges Kankakee County Man with Bank Fraud Related to Construction Loans
Springfield, Ill. – A federal grand jury has indicted a Bourbonnais, Ill., man, Daniel Ballard, 56, on charges of bank fraud in an indictment returned yesterday. The U.S. Clerk of the Court will issue a summons to Ballard to appear for arraignment in federal court in Urbana.
The three-count indictment alleges that Ballard obtained a construction loan in December 2009, in the amount of $260,000, to build a residence at 3013 Stone Fence Drive in Bourbonnais. As part of the fraud scheme, and to allegedly obtain money from the bank to build the residence on Stone Fence Drive, Ballard obtained additional construction loans to build or remodel buildings on other properties he owned in Bradley, Ill.: 411 N. Center; 248 N. Center; and 471 N. Grand. An explicit term of the construction loan disbursing agreement required that work for which Ballard was requesting payment be completed before the bank would disburse funds to the title company.
From December 2009 to May 2012, as part of the scheme to defraud, Ballard allegedly falsely stated or caused others to falsely state in documents submitted to the title company that costs had been incurred for labor and / or materials for construction at the Bradley, Ill., properties. In fact, the indictment alleges the costs of labor and materials were substantially below the amount represented or were not furnished to the Bradley properties at all. As a result, the bank was allegedly exposed to a loss of more than $400,000.
If convicted, each count of bank fraud carries a penalty of up to 30 years in prison and a fine of up to $250,000.
The charges are the result of investigation by the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General. Assistant U.S. Attorney Eugene M. Miller 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.