Georgetown Home Builder Sentenced In Fraud Case

Reported by: Tom Kenny
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Updated: 12/12/2013 10:30 pm
A Georgetown home builder was sentenced to 69-months in federal prison for fraudulently obtaining more than $1 million in loans from a Frankfort bank, according to prosecutors.

Lee C. Tevis, 59, of Georgetown, was sentenced for bank fraud, a false loan application, aiding and abetting bank embezzlement and aggravated identity theft.

Tevis was convicted at trial in August of 2013 and acquitted of a conspiracy charge.

Prosecutors said beginning in 2006, Tevis fraudulently obtained loans from American Founders Bank (AFB), by setting up bogus corporations in the names of other people to bypass loan limits, while building a house.

Prosecutors said Tevis used some of the loan money, which the bank intended to be used to build a home in Frankfort, to pay off his personal loans and debt on other construction projects.

According to trial testimony, when Tevis reached loan limits established by the Bank, he set up a bogus corporation in the name of his company's foreman, an illegal alien, in order to get more loans.

After fraudulently qualifying for the loans, Tevis used the social security number of the foreman's five-year old son to pass the bank's credit check, according to testimony at trial.

The Bank eventually foreclosed on the home for which Tevis received the loans and suffered a significant financial loss.

Additionally, Jim Tate, the AFB president who approved Tevis' loans, pleaded guilty to bank fraud and received a sentence of 36-months in prison.
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