Jury Convicts in Check Kiting Trial
TOPEKA, KAN. – A federal jury convicted a Kansas man of 31 counts of bank fraud, one count of making a false statement in connection with a Small Business Administration guaranteed loan, and one count of making a false statement in a loan or credit card application.
According to court documents and evidence presented at trial, Tyler Gillum, 51, of Plainville owned and operated Plainville Livestock Commission Inc. from 2006 until 2019. Between January 2015 and August 2017, Gillum wrote checks and made wire transfers between various accounts under his control at various banks in a scheme commonly known as check kiting. This is when checks are continually written back and forth to fraudulently inflate account balances tricking banks into honoring checks written with insufficient funds. Gillum’s scheme resulted in losses of more than $10 million to the banking system.
Gillum also applied for and obtained a $1,500,000 loan, secured by the U.S. Small Business Administration, and a $500,000 line of credit from Almena State Bank, while concealing he’d previously signed an approximately $6.1 million promissory note to TBK Bank of Dallas, Texas.
“Because of the defendant’s crimes, banks suffered millions of dollars in losses. These fraudulent acts should be of concern to everyone, because the stability our nation’s banking system is vital to the financial health of this country,” said U.S. Attorney Duston Slinkard, District of Kansas.
The FBI, U.S.D.A. Office of Inspector-General, S.B.A. Office of Inspector-General, and F.D.I.C. Office of Inspector-General investigated the case.
U.S. Attorney Duston Slinkard commends the work of Assistant U.S. Attorneys Sara Walton and the late Richard Hathaway in preparing and prosecuting the case.