Archive for Thursday, August 7, 2014

Business owner with Bonner, Basehor connections indicted for bank fraud

August 7, 2014

A business owner with connections to Bonner Springs and Basehor has been indicted on federal bank fraud charges, U.S. Attorney Barry Grissom said today.

Brenda Wood, 45, Leavenworth, Kan., was indicted Wednesday on five counts of bank fraud, one count of theft from an employee benefit program, and four counts of willful violations of the Employee Retirement Income Security Act.

The indictment alleges the crimes took place while Wood owned several businesses including Professional Cleaning and Innovative Building Services, Inc. in Kansas City, Mo., and three businesses in Bonner Springs: Action Real Estate Services, LLC; G&W Investments, LLC; and Riverview Crossings, LLC.

The indictment alleges Wood obtained loans for herself and her companies through Farmers Bank in Overland Park by making false representations and submitting falsified documents to the bank. The following are the allegations in the indictment related to Bonner Springs and Basehor:

• Wood obtained a loan on behalf of Riverview Crossings to purchase property in Bonner Springs in part by forging the signature of a second mortgage holder releasing the deed.

• Wood submitted falsified invoices totaling more than $100,000 to support fraudulent draws on the Riverview Crossings loan.

• Wood obtained a loan on behalf of her Kansas City, Mo., company to buy property in Basehor, in which she fraudulently inflated the purchase price to make it appear the loan met the bank’s loan-to-value ratio requirements.

Farmer’s Bank received $12 million from the U.S. Treasury’s Troubled Asset Relief Program. In November 2012, the bank paid the U.S. Treasury approximately $11.4 million to redeem the funding, resulting in a shortfall of more than $500,000.

If convicted, she faces a maximum penalty of 30 years in federal prison and a fine up to $1 million on each of the bank fraud charges, a maximum penalty of five years and a fine up to $250,000 on the charge of theft from an employee benefit program, and a maximum penalty of 10 years and a fine up to $250,000 on each count of violating ERISA.

The Department of Labor, Office of Inspector General, the Special Investigator General for the Troubled Asset Relief Program and the FBI investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.

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