LEXINGTON, Ky. (WTVQ) – A Lexington man faces as much as 32 years in prison and up to $1 million in fines if convicted of federal bank fraud and identity theft charges stemming from his alleged scam to try to get out of a bank loan ( vonnie mcdaniels indict ).
According to federal court records, Vonnie J. McDaniels, who was manager of V&M Leawood Properties in Frankfort, was indicted Sept. 10 for falsifying his assets on bank loan applications, lying about a lease agreement with the state and then giving Kentucky Bank a fake letter from the state.
McDaniels first is accused of lying about his assets on loan applications in April 2019 to purchase property at 911 Leawood in Frankfort and of not being truthful about the length of a lease agreement with the state on the property.
In August, Kentucky Bank granted $382,500 loan. The state canceled its lease on the property and moved out in December, but McDaniels didn’t alert the bank, even telling an officer in March 2020 the state still was leasing the property, according to the indictment.
Then in April 2020, McDaniels gave the bank a letter, allegedly from Brien Hoover, a leasing officer in the Finance and Administration Cabinet, claiming the state was ending lease payments because of COVID-19.
The bank fraud charges carry up to 30 years in prison, if convicted, while the identity theft carries two years. Federal prosecutors also are asking that McDaniels be forced to forfeit any money or property he gained from his actions.
He is scheduled for an initial appearance in court on Sept. 24.