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Justice News

Department of Justice
U.S. Attorney’s Office
Central District of Illinois

FOR IMMEDIATE RELEASE
Wednesday, May 2, 2018

McHenry County Farmer Charged with Bank Fraud

URBANA, Ill. – A federal grand jury returned an indictment today that charges Timothy A. Cosman, 42, a McHenry county farmer, with bank fraud related to loans he obtained from Busey Bank in Champaign, Ill. A summons will be issued to Cosman to appear in federal court in Urbana for arraignment.

The indictment alleges that from February 2014 to April 2016, Cosman, of Harvard, Ill., executed a scheme to defraud the bank. Cosman allegedly inflated his assets to make the bank believe its loans would be more secure than they were. To inflate his assets, Cosman made false claims about his ownership in family companies; claimed the loans would be secured by farm equipment he owned, when the equipment was actually owned by someone else; falsely claimed he was the beneficiary of a promissory note; and, claimed a loan for cattle would be secured by cattle, however, no cattle were purchased. To further his scheme, Cosman allegedly forged signatures and falsified documents presented to the bank. As a result of the alleged scheme, the bank was exposed to a loss of approximately $2.96 million.

If convicted, each count of bank fraud (three counts) carries a statutory 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. Busey Bank has cooperated with investigators during the investigation. Assistant U.S. Attorney Ryan Finlen 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.

Topic(s): 
Financial Fraud
Updated May 2, 2018