A former Bend area bank loan officer is facing prison time after admitting to causing a staggering $2.6 million in losses for his former employer, West Coast Bank. 50-year-old Jeffrey Sprague pleaded guilty to conspiracy to make false statements to a financial institution, to commit wire fraud, and to commit bank fraud in U.S. District Court in Eugene, Oregon.
The charge stems from the collapse of Desert Sun Development (DSD), a development and construction company in Bend, Oregon, where Sprague worked as a loan officer. As part of his guilty plea, Sprague admitted to falsifying loan applications for DSD employees and others by inflating their monthly income and claiming that these homes were going to be their primary residences when he knew they were part of DSD’s flipping scheme.
Sprague also knowingly submitted loan files containing forged or scanned signatures and other material misrepresentations and omissions to West Coast Bank, which ultimately approved and funded the loans. The bank lost over $2.6 million on these fraudulent loans.
Thirteen individuals were charged in five indictments related to the DSD investigation, and with Sprague’s guilty plea, all 13 defendants have now pleaded guilty. Sprague is set to appear before Chief U.S. District Court Judge Ann Aiken for sentencing on September 3, 2013, while his co-defendants are scheduled for sentencing on July 10 and July 31, 2013.
Conspiracy carries a maximum sentence of five years in prison and a $250,000 fine. The case was investigated by the FBI, IRS-Criminal Investigations, and the Oregon Division of Finance and Corporate Securities.
Assistant U.S. Attorney Scott E. Bradford is handling the prosecution of the case. The guilty plea marks a significant victory in the ongoing effort to hold accountable those responsible for the collapse of Desert Sun Development and the resulting financial losses for West Coast Bank and its customers.
The case serves as a reminder of the importance of transparency and accountability in the financial industry, and the serious consequences that can result from fraudulent activities.
Sprague’s guilty plea is a stark reminder that white-collar crime will not be tolerated, and those who engage in such activities will be held accountable for their actions.
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Key Facts
- State: Oregon
- Category: Financial Crimes|White Collar Crime|Fraud
- Source: DOJ Press Release ↗
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