TOPEKA, KS—A former vice president at Heritage Bank in Topeka has been sentenced to 30 months in federal prison for bank fraud, U.S. Attorney Barry Grissom said today. The judge also ordered her to pay $712,144 in restitution.
Jennifer Hughes-Boyles, 40, Topeka, Kansas, pleaded guilty to one count of bank fraud. In her plea, she admitted that the crime took place in 2011 while she was a vice president of Heritage Bank, located at 3024 SW Wanamaker Road in Topeka. Her duties included residential and commercial lending, consumer lending, and foreclosed properties transactions.
Bank officials began investigating when they noticed that from March 14, 2011 to May 9, 2011, Hughes-Boyles originated more than $2 million in real estate loans in spite of economic conditions at the time. Bank officials also noticed changes in her lifestyle during that time, including the purchase of a late model Corvette.
An audit determined that Hughes-Boyles was providing false documentation to the bank’s loan committee by fabricating or altering credit scores on loan applications. In one instance, Hughes-Boyles purchased a duplex that was in foreclosure for $180,000. On the same day, she resold the property to a buyer she had qualified for a loan at Heritage Bank. The new buyer purchased the property for $325,000. In reality, though, the new buyer did not make a down payment to Hughes-Boyles, which was a violation of the bank’s rules and created the false appearance that the new buyer had equity in the transaction.
Grissom commended the FBI, the Shawnee County District Attorney’s Office, Assistant U.S. Attorney Christine Kenney, and Assistant U.S. Attorney Richard Hathaway for their work on the case.