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Justice News

Department of Justice
U.S. Attorney’s Office
Southern District of Indiana

FOR IMMEDIATE RELEASE
Thursday, April 3, 2014

Hogsett Announces Federal Bank Fraud Charges Against Rockville Man

Local automobile dealer defrauds bank of nearly $200,000.00

ROCKVILLE, IND- Joseph H. Hogsett, United States Attorney announced today that federal charges have been filed against a Rockville man for one count of bank fraud. Kevin B Jacks, 61, Rockville, has been formally charged by information and has signed an agreement to plead guilty in federal court.

“Each one of us has to be accountable for our actions both in our private and professional lives,” said Hogsett. “If you steal from financial institutions, you steal from all Hoosiers and my office will hold you responsible.”

According to the information, Jacks was the president and owner of Jacks and Jacks Motor Company (JJMC) in Rockville. He bought and sold vehicles for the dealership which were financed by First Financial Bank, N.A. (First Financial). Jacks had a security agreement with First Financial on the inventory whether presently owned or later acquired. Jacks had a wholesale financing plan, commonly referred to as a “floor plan” whereby Jacks was to make timely payment to First Financial upon the sale of automobiles covered in the agreement. First Financial would regularly send an auditor to JJMC to inspect the inventory and determine which automobiles covered by the floor plan were still for sale and which had been sold.

The information alleges that on various occasions between May 2009 and May 2011, Jacks would sell automobiles covered under the plan but failed to make the required payment. To conceal the fact that these automobiles were sold, Jacks would have the owner return the vehicle to JJMC business lot so that he could fraudulently represent to First Financial and their auditors that the automobiles had not yet been sold. The government further alleges that Jacks made false statement about the location of certain automobiles which had been sold out of trust but were not present at the JJMC lot at the time of audits.

According to Assistant U.S. Attorney James Warden who is prosecuting the case for the government, Jacks faces a maximum of 10 years in prison and a $250,000 fine. No future court date has been set.

An information is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.


Updated January 26, 2015