Former Head of Insurance Company Indicted for Bank Fraud, Money Laundering
By: KARK 4 News
Updated: August 8, 2012
The Department of Justice reports that 55-year-old Steven Alan
Standridge of Mt. Ida, Arkansas was indicted for bank fraud and money
laundering on Wednesday.
The 12-count indictment charges Standridge with one count of conspiring to commit bank fraud, four counts of aiding and abetting bank fraud, one count of bank fraud, five counts of money laundering, and one count of making a false statement to a financial institution.
"The United States Attorney's Office would like to thank not only the FBI and IRS-CI for their diligent work on this investigation but also the Arkansas Insurance Department-Criminal Investigation Division for their invaluable assistance throughout the investigation," stated US Attorney for the Eastern District of Arkansas Christopher Thyer. "The type of fraud alleged in the indictment impacts not only the financial institutions involved but society as a whole, and partnership between federal and state agencies helps combat these offenses."
According to the DOJ, the indictment alleges that Standridge conspired with Danny Wood of Idabel, OK and Gregory Hunt of Russellville, AR to commit bank fraud.
During the time the alleged bank fraud occurred, Standridge owned, operated and/or managed various independent insurance agencies in Arkansas, where he provided different types of insurance policies and bonds to his customers.
As part of the conspiracy, Standridge allegedly arranged for Wood, Hunt and their companies to obtain premium finance loans, then purchase the insurance policies used for collateral to those loans, and then either cancel the policies or never actually purchase the policies that were listed on the original loan agreements.
Wood pleaded guilty to aiding and abetting bank fraud in March and was later sentenced to 30 months imprisonment.
Hunt pleaded guilty to the same charge in June, but his sentencing date has not been scheduled.
The proceeds of those loans were ultimately paid to Standridge and were used for purposes other than those set forth in the loan agreements. Some of the transactions involving the loan proceeds are charged as money laundering offenses in the indictment.
The statutory penalty for the bank fraud and false statement to a financial institution offenses is not more than thirty (30) years imprisonment and a fine of up to $1,000,000. The statutory penalty for the money laundering offenses is not more than ten (10) years imprisonment and a fine of up to $250,000.
The investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation with the assistance of the Arkansas Insurance Department-Criminal Investigation Division. It is being prosecuted by Assistant United States Attorney Karen Whatley.
The 12-count indictment charges Standridge with one count of conspiring to commit bank fraud, four counts of aiding and abetting bank fraud, one count of bank fraud, five counts of money laundering, and one count of making a false statement to a financial institution.
"The United States Attorney's Office would like to thank not only the FBI and IRS-CI for their diligent work on this investigation but also the Arkansas Insurance Department-Criminal Investigation Division for their invaluable assistance throughout the investigation," stated US Attorney for the Eastern District of Arkansas Christopher Thyer. "The type of fraud alleged in the indictment impacts not only the financial institutions involved but society as a whole, and partnership between federal and state agencies helps combat these offenses."
According to the DOJ, the indictment alleges that Standridge conspired with Danny Wood of Idabel, OK and Gregory Hunt of Russellville, AR to commit bank fraud.
During the time the alleged bank fraud occurred, Standridge owned, operated and/or managed various independent insurance agencies in Arkansas, where he provided different types of insurance policies and bonds to his customers.
As part of the conspiracy, Standridge allegedly arranged for Wood, Hunt and their companies to obtain premium finance loans, then purchase the insurance policies used for collateral to those loans, and then either cancel the policies or never actually purchase the policies that were listed on the original loan agreements.
Wood pleaded guilty to aiding and abetting bank fraud in March and was later sentenced to 30 months imprisonment.
Hunt pleaded guilty to the same charge in June, but his sentencing date has not been scheduled.
The proceeds of those loans were ultimately paid to Standridge and were used for purposes other than those set forth in the loan agreements. Some of the transactions involving the loan proceeds are charged as money laundering offenses in the indictment.
The statutory penalty for the bank fraud and false statement to a financial institution offenses is not more than thirty (30) years imprisonment and a fine of up to $1,000,000. The statutory penalty for the money laundering offenses is not more than ten (10) years imprisonment and a fine of up to $250,000.
The investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation with the assistance of the Arkansas Insurance Department-Criminal Investigation Division. It is being prosecuted by Assistant United States Attorney Karen Whatley.
