Emmetsburg Banker and Co-Schemers Sentenced in Federal Court

On Tuesday, November 24, 2015, three men were sentenced for their roles in a scheme to defraud the Iowa Trust and Savings Bank in Emmetsburg, Iowa.

Richard Jones, age 62, a banker from Emmetsburg, Iowa, Michael Manning, age 68 of Milford, Iowa, and Aric Manning, age 37, of Phoenix, Arizona were each convicted of one count of bank fraud, and were sentenced to federal prison for their roles in the scheme.  Two others, Russ Salton, age 55, of Ruthven, Iowa, (who pled guilty to bank fraud) and Sue Salton, age 52, of West Des Moines, Iowa, (who pled guilty to False Statement to a Bank), had already been sentenced in federal court.  

During the five change of plea hearings and five sentencings in this case, it was revealed that for over six years (from about November 24, 2003 to about March 29, 2010) as Senior Vice-President of Iowa Trust and Savings Bank (“ITSB”), in Emmetsburg, Iowa, Jones used his position of trust to engage in two similar, but wholly separate, criminal schemes with two separate groups of criminals (i.e., the Mannings in one scheme, and the Saltons in another).

Jones side-stepped the safeguards the ITSB and FDIC had established to protect ITSB from making dangerous loans.  Jones deceived the bank into thinking third parties were taking out new loans in small amounts, when in fact, Jones was actually directing the bank’s money to the Mannings and the Saltons, both of whom were struggling borrowers with worrisome amounts of debt.

During these schemes, Jones personally forged the signatures of unknowing bank customers, repeatedly lied to and tricked his fellow ITSB bankers, and repeatedly committed aggravated identity theft by stealing the identity of some of his customers to fraudulently direct money to his co-schemers.

The Jones-Salton scheme fraudulently obtained loans worth about $389,284.00 and the Jones-Manning scheme fraudulently obtained loans worth about $86,351.17.  None of these fraudulent loans could have been obtained without Jones’s personal involvement in each of the schemes.        

Jones and the Mannings were sentenced in Sioux City by United States District Court Judge Mark W. Bennett.  Jones was sentenced to 14 months’ imprisonment.  A special assessment of $100 was imposed, and he was ordered to pay restitution in the amount of $207,209.17 to ITSB.  He must also serve a five-year term of supervised release after the prison during which time he must make presentations warning others of the consequences of engaging in bank fraud.  Finally, he was required (by his plea agreement with the United States) to make a public acknowledgment of guilt in several local papers. There is no parole in the federal system.

Aric Manning was sentenced to 12 months’ and 1 day imprisonment.  A special assessment of $100 was imposed, and he was ordered to pay restitution in the amount of $58,049.17 to ITSB.  He must also serve a 5-year term of supervised release after the prison term. 

Mike Manning was sentenced to time served (about a day).  A special assessment of $100 was imposed, and he was ordered to pay restitution in the amount of $27,460.00 to ITSB.  He must also serve a 3-year term of supervised release after the prison term. 

Sue Salton was sentenced in Sioux City on October 23, 2015, by United States District Court Judge Mark W. Bennett.  Sue Salton was sentenced to time served (about a day).  A special assessment of $100 was imposed and she forfeited $10,000 to the United States.  She must also serve a 3-year term of supervised release after the prison term. 

Russell Salton was sentenced in Sioux City on November 9, 2015 by United States District Court Judge Mark W. Bennett.  Russell Salton was sentenced to 13 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to pay restitution in the amount of $121,700 to ITSB.  A special assessment of $100 was imposed.  He must also serve a 5-year term of supervised release after the prison term. 

Jones and Aric Manning (like Russell Salton before them) were released on the bond previously set and are to surrender to the Bureau of Prisons on a date yet to be set.   

Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number for Jones is 14-3061.  The case file number for Russell Salton is 14-3058 and for Sue Salton is 14-3064.  The case file number for Michael Manning and Aric Manning is 14-3057.

The case was investigated by the Federal Deposit Insurance Corporation, Office of Inspector General; The Iowa Department of Criminal Investigations; the Federal Bureau of Investigations; the Small Business Administration, Office of Inspector General; and the Department of Veterans Affairs, Office of Inspector General.  The case was prosecuted by Assistant United States Attorney Forde Fairchild.

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