Kankakee Man Convicted in $280K Bank Fraud Scheme

Daniel Ballard, 57, of Bourbonnais, Ill., was convicted Tuesday on all counts of bank fraud after a three-hour jury deliberation in federal court in Peoria. The verdict caps a years-long scheme in which Ballard allegedly weaponized construction loans to siphon $280,000 from financial institutions under false pretenses.

Ballard secured the initial loan in December 2009 to build a home at 3013 Stone Fence Drive in Bourbonnais, but quickly expanded his reach into neighboring Bradley, Ill. He obtained additional construction financing for properties at 411 N. Center, 248 N. Center, and 471 N. Grand—all under the same fraudulent blueprint. Each loan came with a strict condition: no funds disbursed unless verified work was completed.

The fraud unfolded over nearly three years, from December 2009 to May 2012, during which Ballard repeatedly submitted falsified documentation to the title company. These papers claimed labor and materials had been paid for or delivered to the Bradley sites when, in reality, costs were either grossly inflated or entirely nonexistent. Inspectors later found incomplete builds, phantom contractors, and invoices for work never rendered.

Chief U.S. District Judge James E. Shadid presided over the trial, which began November 29, 2016. Assistant U.S. Attorney Eugene M. Miller, who prosecuted the case, laid out a paper trail of doctored invoices, false certifications, and withdrawn funds funneled through shell transactions. The evidence left little room for doubt, jurors said after the verdict.

Ballard faces up to 30 years in prison on each of the three bank fraud counts, with fines reaching $250,000 per count. While Congress sets the maximum penalties, actual sentencing will follow the advisory Sentencing Guidelines and other statutory considerations. Sentencing is scheduled for March 27, 2017. Ballard remains free on bond pending that date.

The investigation was conducted by the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General. Authorities say the case underscores the vulnerability of construction lending to insider manipulation and paper fraud—where the real damage is buried not in bricks and mortar, but in forged documents and broken trust.