A Cincinnati man pleaded guilty to bank fraud on Tuesday which involved a real estate loan in Lawrenceburg, Indiana from 2007.
Dwayne H. Means, 46, was charged in U.S. District Court with conspiracy to commit bank fraud in connection with a loan to buy a lot in the Villages of Sugar Ridge subdivision.
According to court documents, Means and Thomas Reusch, 60, of Florence, formed TBS Development LLC and applied for a loan to develop a lot in the subdivision worth $1.2 million.
Authorities said Reusch and Means convinced the seller to falsely increase the sale price, and TBS reportedly obtained a $2,170,000 loan from Central Bank.
According to prosecutors, Means and Reusch did not tell the bank that the additional funds included three years' worth of pre-payment of rent for Gimmies Restaurant, which was located at Sugar Ridge Golf Course.
TBS reportedly submitted false invoices to Central Bank and fraudulently obtained $558,446.81 in loan proceeds.
Reusch pleaded guilty on Jan. 8 to one count of conspiracy to commit bank fraud, which is punishable by up to 30 years in prison and a fine of $1 million. Reusch's sentencing is scheduled for April 29.
Means will be sentenced on April 30.
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