ROCKFORD—A Woodstock, Illinois man was
sentenced today by U.S. District Judge Philip G. Reinhard to two years in
federal prison for bank fraud and money laundering. In addition, Jon C. Shain,
50, was ordered to pay restitution of $397,082 to Amcore Bank (now known as BMO
Harris Bank) and to serve three years on supervised release after being
released from prison. Shain will not be eligible for parole.
In pleading guilty on August 15, 2011,
Shain admitted that in 2004, he created Coating Technologies Inc. and served as
its only officer and director. In November of 2004, Amcore agreed to loan
Coating Technologies $884,000 to purchase a building and equipment. According
to the plea agreement, Shain obtained the loan proceeds in 2005 by submitting
fictitious invoices claiming to have purchased equipment and related services.
According to the plea agreement, Shain used similar sounding names and false
addresses on the invoices to avoid further inquiries by Amcore.
The plea agreement also provided that in
February 2006, Coating Technologies and an unrelated business combined to do
business as Barron Finishing Technologies Inc., of which Shain was president.
Barron Finishing obtained Amcore loans of more than $2 million to purchase real
estate and equipment. The plea agreement states that Shain again submitted
fictitious invoices and documents to Amcore to obtain loan proceeds from
Amcore, drawing hundreds of thousands of dollars more than the actual cost of
equipment and using part of the loan proceeds to buy real estate that was not
permitted by the terms of the loan. Shain admitted to obtaining loan proceeds
to purchase properties on Chatsworth Drive and Stratford Avenue in Rockford in
the name of a business entity Shain controlled.
In the plea agreement, Shain
acknowledged that real and personal properties located on Hydraulic Road,
Chatsworth Drive, and Stratford Avenue in Rockford constitute proceeds of the
money laundering violations and that the properties are subject to forfeiture.
The sentencing was announced by Patrick
J. Fitzgerald, United States Attorney for the Northern District of Illinois,
and Robert D. Grant, Special Agent in Charge of the Chicago Office of Federal
Bureau of Investigation.
The government was represented by Assistant
U.S. Attorney Michael D. Love.
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