On Friday, Acting United States Attorney Tom Larson announced that a former Summersville, Missouri bank officer had been sentenced for his involvement in a fraud scheme. 44-year-old Keith Ray Smith was sentenced for taking out loans by stealing the identity information of bank customers. Smith has been sentenced to two years and one day in federal prison and without parole. The court has also ordered Smith to pay restitution to the bank.
Smith pleaded guilty to a single count of making false statements on a loan application and one count of aggravated identity theft on April 17, 2017. At the time of the scheme, Smith was employed with the Community Bank in Summersville. The bank is now called Security Bank of the Ozarks. Smith served as the bank loan officer and compliance officer.
The defendant admitted to taking out numerous loans in the names of several bank customers without their permission. The loan applications, which varied in amounts, totaled $81,040 from 2015 to June of 2016. To complete the fraud, Smith used the personal identification information of bank customers. He used their bank account details and Social Security numbers to falsely submit the loan applications.
Smith subsequently approved the applications and transferred the money to his personal bank account. Ultimately, the money was used for personal expenses or for gambling. In 2010 and 2011, Smith used information belonging to his mother and brother to apply for roughly $70,000 in loans. Again, Smith approved the loans and transferred the money to his account, so he could use the money for his gambling habit.
In 2012, Smith agreed to repay the money owed. In return, his mother and brother agreed to submit new loan documents to replace the false documents. When questioned by agents, the mother and brother admitted they did so to prevent the defendant from getting into trouble. Nevertheless, Keith Ray Smith has been sentenced to two years and one day in federal prison.