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United States of America v. Dana Frye
Case Number: 4:19-cr-40065-SLD
Judge: Sara L. Darrow
Court: United States District Court for the Central District of Illinois (Winnebago County)
Plaintiff's Attorney: Douglas Quivey and Douglas McMeyer
Call 888-354-4529 if you need help finding a conspiracy to defraud the United States criminal defense lawyer in Rock Island, Illinois
Rock Island, IL - Former Bank Executive Pleads Guilty to Fraud Related to Failed Country Bank of Aledo, Illinois
The former executive vice president and chief loan officer for the failed Country Bank of Aledo, Ill., Dana Frye, pleaded guilty to charges of making false statements to the bank. During his appearance before Chief U.S. District Judge Sara Darrow, Frye pleaded guilty to conspiring with others to make materially false statements to the Country Bank board of directors to influence the bank to make loans to entities in which he held a personal financial interest.
Frye, 66, currently of Bettendorf, Iowa, served as executive vice president and chief lending officer for Country Bank, in Aledo, from its formation in March 2000 to Dec. 31, 2010. During that time, Frye held financial interest in multiple real estate developments. These developments included a golf course and surrounding residential lots in Sherrard, Ill., known as the “Fyre Lake Project,” which benefitted from Country Bank loans that totaled more than $20 million.
Frye admitted that he conspired with others to influence Country Bank to make loans to projects in which he held a personal financial interest, including the Fyre Lake Project, but failed to disclose his financial interest. Frye further admitted that he used his position to assist others to secure loans for the Fyre Lake Project and another project in Milan, Ill.
Frye held ownership in multiple companies that either directly participated in real estate development or provided services to persons and entities engaged in the development. One company, known as Webgem, Inc., owned by Frye and his son, provided accounting and other services to developers. Frye did not disclose to the bank board of directors that Webgem was going to be paid, and eventually was paid, $480,000, from bank loans of $5 million related to the project in Milan. In May 2009, Country Bank received $4.1 million in aid through the Department of Treasury’s Troubled Asset Relief Program, known as TARP. In October 2011, Country Bank failed and the Federal Deposit Insurance Corporation, as receiver, covered losses in excess of $70 million.
At sentencing, scheduled on February 26, 2020, Frye faces a potential sentence of imprisonment of five years along with payment of restitution.
The FDIC Office of Inspector General and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) conducted the investigation.
18:371.F: CONSPIRACY TO DEFRAUD THE UNITED STATES. From an unknown date beginning no later than January 1, 2007, and continuing to 12/31/2010, in Mercer County, in the Central District of Illinois, the Defendant did knowingly and willfully conspire and agree with other persons, both known and unknown, to make false statements or reports in loan departments in violation of 18 USC 371.
Outcome: 10/11/2019 2 + + PRETRIAL SERVICES REPORT as to Dana Frye (Seaton-Ewers, Mary) (Entered: 10/11/2019)
10/11/2019 3 +++ PRETRIAL SERVICES RECOMMENDATION as to Dana Frye. (Seaton-Ewers, Mary) (Entered: 10/11/2019)
10/11/2019 Receipt #44626003668 entered 10/11/2019 Surrender of Passport as to Dana Frye: Passport Number 525440080 issued by United States of America. (RL, ilcd) (Entered: 10/11/2019)