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Archive for Thursday, March 7, 2013

Schmidt Builders executive faces federal fraud charges in $15M loan from Lawrence bank

March 7, 2013

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A former executive of a Topeka lumber company faces federal charges after allegedly defrauding a Lawrence bank of $15.2 million five years ago.

John Duncan, 52, was indicted Wednesday on one count of bank fraud and one count of money laundering, according to a news release issued by the office of U.S. Attorney Barry Grissom. Federal prosecutors have accused Duncan, who was the chief financial officer of Schmidt Builders Supply Inc., of making false statements in a $15.2 million loan application to University National Bank, 1400 Kasold Drive.

The loan was made to finance the construction of apartments in Junction City. Duncan, who was also a partner in that project, wrote a letter to the bank falsely claiming that Schmidt Builders held more than $1 million in lumber to be used as collateral for the loan, according to prosecutors.

The money laundering charge alleges that Duncan made a wire transfer of money obtained through bank fraud.

Schmidt Builders maintained six locations, including a store in Lawrence and a lumberyard in Topeka, until the business failed and its assets were seized by creditors in 2011. At the time, the story was covered in some detail by the Topeka Capital-Journal.

If convicted, Duncan could face a maximum sentence of 30 years in prison and a $1 million fine for bank fraud and a maximum of 10 years for money laundering.

Comments

Patrick Rooney 1 year, 9 months ago

Yet if your drunk and run someone over, 10-12 max.......what BS

1southernjayhawk 1 year, 9 months ago

Tell that to the guy that got run over by the drunk.

Cant_have_it_both_ways 1 year, 9 months ago

The list would suprise you, and probably the reason many don't know.

CLARKKENT 1 year, 9 months ago

The list would surprise some, but not all of us. The employees who worked for the company 20/30 years, whom he kept all their retirement, is the ones to feel sorry for. This has been a long time coming, and is well deserved for Mr. Duncan. Hopefully all the deeds this man did will come to the surface, as there are many.

Patti Lash Brown 1 year, 9 months ago

this is just a small part of the illegal things he did. spending retirement money from the employees, fake companies....when the FBI is checking you out you did something bad. Ruin peoples jobs. More will come from this crook.

jack22 1 year, 9 months ago

You don't need a bank in this town, just tell the city you're building a recreation center and they'll give you all the money you need and more tax breaks than you've ever dreamed of. Banks are passe', didn't this guy get the memo?

Reuben Turner 1 year, 9 months ago

well i be.. so funny, but true 1southernjayhawk. folks is just sneaky and money hungry nowadays and it's disgusting. they ought to know that doing wrong soon catches up with you. I'd hate to be spending the last half of my life in a prison; oh well!!

Steve Jacob 1 year, 9 months ago

Remember this loan looks like it was made before the crash of 2008, when banks handed out money without even looking at the forms.

Patti Lash Brown 1 year, 9 months ago

This was a 40 year old company that would still be in business except for the fact that Mr Duncan ruined it. This was a 40 million dollar company in 2004. There was alot of crooked stuff he did and I think he should get a year in prison for each employee that lost their job because of his greed & poor mangement.

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