Des Moines-Area Developer Pleads Guilty to Bank Fraud

DES MOINES, IA—Randal L. Walters, age 55, of Polk County, Iowa, appeared in federal court in Des Moines on Thursday, September 20, 2012, and pled guilty to one count of bank fraud in connection with a loan to develop a Des Moines area condominium project, announced Nicholas A. Klinefeldt, United States Attorney for the Southern District of Iowa.

During the plea proceeding, Walters admitted to diverting funds borrowed from First Bank of West Des Moines, Iowa, for a Des Moines-area condominium project know as the Meadow Cove project. Walters also admitted that he made or caused to be made material misrepresentations to First Bank and/or the material omission of information to First Bank regarding the intended use of certain funds being advanced on the Meadow Cove project, the status of development of the Meadow Cove project, and the extent to which Meadow Cove had received lien waivers from various subcontractors on the Meadow Cove project.

Sentencing before United States District Court Chief Judge James E. Gritzner is scheduled in Des Moines on January 3, 2013, at 9:00 a.m.. Walters remains free on conditions of release pending sentencing. The conviction carries a possible maximum sentence of 30 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and five years of supervised release.

This case was investigated by the United States Federal Bureau of Investigation and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

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Former El Dorado Bookkeeper Pleads Guilty to Seven Counts of Defrauding Doctor and Bank Out of More Than $540,000

EL DORADO, AR—Conner Eldridge, United States Attorney for the Western District of Arkansas, announced today that Jason Christopher Knight, 31, of El Dorado, Arkansas, pleaded guilty to seven counts of bank fraud involving Dr. Shailesh Vora’s medical practice and hotel and motel entities and BancorpSouth. Knight, a former bookkeeper for Dr. Vora defrauded the businesses and the bank out of approximately $540,000 over an eight-year period of time. The Honorable U.S. District Judge Susan Hickey, accepted the guilty plea in U.S. District Court in El Dorado.

United States Attorney Conner Eldridge commented, “We will continue to prosecute those who commit fraud and abuse positions of trust in order to enrich themselves. In this case, a bookkeeper used his position to defraud his employer and a local bank of a substantial sum of money. This conduct is egregious, and he has been held accountable.”

According to information in the plea agreement, Knight was employed as a bookkeeper for Neurology and Sleep Disorder Center of South Arkansas (NSDC) and Akshar LLC, a hotel venture that operated hotels and motels in Louisiana, Texas, and Mississippi. Both entities conducted business in El Dorado, Arkansas, and were owned by Dr. Shailesh Vora. As bookkeeper, Knight was authorized to issue checks drawn from several NSDC and Akshar LLC bank accounts.

From June 2002 to 2009, Knight used his position to draw approximately 215 checks and $540,298.24 from several of the companies and BancorpSouth checking accounts without Dr. Vora’s authorization. Knight deposited the funds into a BancorpSouth account in the name of an investment company he controlled called Knight’s Investments.

For each count, Knight faces a maximum sentence of 30 years’ imprisonment and up to a $1,000,000 fine.

The case was investigated by the El Dorado FBI and the El Dorado Police Department. Assistant U.S. Attorney, David Ferguson, prosecuted the case for the United States.

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