Nebraska Farmer Sentenced to Prison for Bank Fraud Scheme
Between April 2017 and May 2019, farmer Liakos was found to have misreported the number of commodities in storage, cattle inventory, and crop acres while concealing his debt to Great Western Bank in order to secure $11 million in loans. This fraudulent activity resulted in a $3.9 million loss for the bank. Liakos claimed that his real estate holdings were worth at least $8.5 million, opposed to the $7.5 million the bank received as credited against the debt. The bank should have recovered between $10 million to $14 million, according to evidence presented by Liakos.
Great Western Bank, now acquired by First Interstate Bank, was a regional banking corporation with branches in multiple states including a location in Nebraska. Liakos operated a farm in Bayard, Nebraska, growing beans, corn, sugar beets, and raising cattle. To obtain funds from Great Western Bank, Liakos misrepresented his financial information, leading to the bank approving loans based on false information provided by Liakos. Following an investigation, Liakos was sentenced to prison for his bank fraud scheme.
The case highlights the importance of accurate financial reporting and transparency in dealings with financial institutions. Liakos’s actions not only resulted in a significant financial loss for Great Western Bank but also led to legal consequences for the farmer. This serves as a cautionary tale for others engaging in similar fraudulent activities. For more information on this case, visit DTN’s website.
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