ROCK ISLAND, Ill. – Two Illinois men, Erik Richard Jones and Mitchell Allen Melega, were sentenced on July 23, 2024 to multi-year prison sentences for their roles in a bank fraud scheme.
Jones, 46, of Colona, Illinois, was sentenced to 54 months of imprisonment to be followed by five years of supervised release. Melega, 38, formerly of Orion, Illinois, was sentenced to 75 months of imprisonment to be followed by five years of supervised release. Both defendants were also ordered to pay $4,840,944.63 in restitution.
The government presented evidence that between 2016 and 2017 Jones and Melega devised and executed a scheme to provide false documents to First Midwest Bank in Moline, Illinois, to induce the bank to provide loans to Colona-based I-80 Equipment for vehicle purchases and improvements.
At the sentencing hearing, U.S. District Judge James E. Shadid found the scheme was particularly sophisticated, involving at least 110 vehicle purchases and alterations to legitimate documents.
Jones, the owner of I-80 Equipment, and Melega, the controller, then diverted loaned funds to other unauthorized uses and directed other employees of the business to provide false information in support of the conspiracy and scheme to defraud.
Both men were charged in October 2020 in a twelve-count indictment, including conspiracy to commit bank fraud, bank fraud, and money laundering. Jones pleaded guilty in September 2023 to all counts of the indictment, and Melega pleaded guilty in March 2024 to the same charges.
The statutory penalty for conspiracy to commit bank fraud is up to 30 years of imprisonment per count; for bank fraud the statutory penalty is up to 30 years of imprisonment per count; and for money laundering the statutory penalty is up to ten years of imprisonment per count.
The U.S. Attorney’s Office, the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), the IRS Criminal Investigation (CI), and the FBI were involved in the investigation and prosecution of the case.
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- Nazaret Chakrian, ID Theft and Wire Fraud, California 2023 · Idaho
- Eric Holub, Tax Withholding Fraud, Cedar Rapids IA, 2023 · Iowa
- Terry L. Gantt, ID Theft and Wire Fraud, Cedar Rapids IA, 2012 · Idaho
Key Facts
- State: Illinois
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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