Former North Texas Loan Broker Sentenced In Bank Fraud
DALLAS (AP) — A former loan broker for Kwik Industries in Dallas has been sentenced to three years in prison and ordered to pay $8.5 million in restitution after pleading guilty last year to one count of conspiracy to commit bank fraud.
Documents show Janice L. Stallons provided services to buyers of Kwik-related businesses who applied for commercial loans.
Officials say that the 57-year-old Fort Worth resident conspired to defraud the U.S. by making materially false and fraudulent statements to the Small Business Administration, leading the SBA to guarantee loans to buyers of Kwik-related businesses who did not qualify for the loans. According to a news release, in one case Stallons misrepresented to Compass Bank that borrowers had fully funded a down payment when they had not.
(Copyright 2012 by The Associated Press. All Rights Reserved.)