Press Release
Former bank vice president charged with bank fraud and demanding bribes in return for loan approvals
For Immediate Release
U.S. Attorney's Office, Northern District of Ohio
The former vice president of a bank in Kent was charged with defrauding his employer out of at least $160,000 and demanding bribes in return for approving loans, said U.S. Attorney Justin Herdman, FBI Special Agent in Charge Stephen D. Anthony and IRS Special Agent in Charge Ryan Korner.
Steven P. McDonald, 43, of Kent, was charged in an 18-count criminal information with bank fraud, receipt of a bribe by a bank official, filing false tax returns and other charges.
McDonald was employed as a commercial loan officer and then vice president of commercial lending at Hometown Bank.
McDonald, in 2011, submitted an application for a $225,000 loan in the name of a friend, without that friend’s knowledge. McDonald directed the statements to be mailed to a post office box he controlled and withdrew approximately $223,000 to pay personal debts, according to the information.
McDonald made some payments on the loan but Hometown sustained a loss of approximately $160,000 from his conduct, according to the information.
McDonald also corruptly solicited and demanded bribes in return for approving loans for bank customers. These bribes came in the form of cashier’s checks totaling approximately $80,000 and a personal loan from a bank customer to McDonald in the amount of $165,000, according to the information.
McDonald also falsified bank records and failed to pay taxes on the income he derived from the fraud scheme, according to the information.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Robert J. Patton following an investigation by the FBI and IRS.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Contact
Mike Tobin
216.622.3651
michael.tobin@usdoj.gov
Updated November 15, 2017
Topics
Tax
Financial Fraud
Component