Former bank president pleads guilty to loan fraud

April 16, 2013 at 12:09 PM

CARTHAGE, Tenn., April 16 (UPI) -- A former bank president in Tennessee has pleaded guilty in federal court to fraudulent banking he conducted to pay employees of a separate business he owned.

Joe Vance, 50, pleaded guilty to four counts of fraud that could result in a total of 35 years in prison, The Tennessean in Nashville reported Tuesday.

Vance was a branch president of Wilson Bank and Trust and previously the president of the Community Bank of Smith County in Carthage, Tenn., the newspaper said.

Before that, he was a loan officer at Wilson Bank and Trust, which eventually took over the Community Bank.

Prosecutors said he awarded himself $500,000 in loans with no collateral. He used the funds to pay workers at his company R.J. Contractors, although some of the loans he placed in his account, the newspaper said.

He also issued loans in the names of people who had no idea they were involved in the transactions.

Sentencing was set for Aug. 12.

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