DES MOINES, Iowa — Four Iowans have pleaded guilty to participating in a loan fraud scheme involving small businesses.
Federal prosecutors announced Friday that three former executives of Valley Bank in Moline, Illinois, and the president of Vital Financial Services fraudulently obtained loan guarantees from the Small Business Administration on behalf of Valley Bank borrowers.
The defendants knew the loans did not meet SBA's requirements for the loan guarantees. The defendants are Susan McLaughlin of Bettendorf; Michael Slater, of Clive; 43-year-old Andrew Erpelding and 70-year-old Larry Henson, both of Davenport.
In all, the defendants successfully obtained guarantees on more than $9 million in loans and caused the SBA to lose more than $4.5 million.