LAWRENCE, Kan. (AP) — A former Lawrence bank executive has been convicted of participating in a fraud scheme involving 26 Kansas banks.
Federal prosecutors say 52-year-old Troy Gregory was convicted Monday of four counts of bank fraud and two counts of false statements.
The fraud occurred while Gregory was a senior vice president at University National Bank in Lawrence.
In an effort to secure a $15.2 million construction loan for bank customers who wanted to build an apartment complex in Junction City, Gregory and others spread the loan to 25 other Kansas banks.
Prosecutors say Gregory misrepresented the financial strength of the borrowers. He also diverted about $1 million of the construction loan for uses other than building the apartments.
The other banks had to write off millions of dollars on the construction loan.