Ex-Osceola Banker Pleads Guilty to $1.4 Million Fraud
DES MOINES, Iowa (AP) — A former loan officer at an Osceola bank has pleaded guilty to transferring $1.4 million from customer accounts to fund fraudulent loans he approved for clients.
Former Clarke County State Bank employee Paul Coffelt pleaded guilty to one count of bank fraud during a hearing in federal court in Des Moines on Tuesday.
Under a plea agreement with federal prosecutors, Coffelt admitted that he submitted false documents to gain approval for loans from the bank's loan committee under false pretenses between 2006 and 2008. He also improperly approved loans without the committee's approval or in amounts above what had been authorized.
To pay for the fraudulent loans for his clients, Coffelt arranged 19 money transfers from unrelated accounts totaling $1.4 million. The transfers were discovered after he was fired.
What's On KCRG