Thomas D. Gretter, 66, formerly of Washington, Iowa, was hit with a 13-month federal prison sentence on January 26, 2017, after admitting to duping a financial institution with forged loan collateral. U.S. Attorney Kevin E. VanderSchel confirmed the sentencing, handed down by U.S. District Court Judge Rebecca Goodgame Ebinger in Davenport, Iowa. Gretter was convicted on two counts of making false statements to a financial institution—charges that cut to the core of trust in the banking system.
The scheme unraveled after Gretter obtained two separate loans from Hills Bank & Trust Company—first on or about December 18, 2013, and again on October 6, 2014. Each time, he pledged collateral backed by documents containing forged signatures of multiple individuals. These falsified papers were knowingly submitted to Hills Bank to manipulate loan approvals. The collateral, authorities confirmed, was either fraudulent or completely unavailable to the bank as security.
Gretter pleaded guilty on September 20, 2016, admitting he presented fabricated documents to influence the bank’s decisions. His deception wasn’t a desperate one-time act—it spanned nearly a year and targeted one of Iowa’s trusted regional banks. By forging signatures and inflating asset claims, he siphoned credit under false pretenses, leaving Hills Bank holding worthless paper.
When the truth surfaced, the damage was clear. Gretter was ordered to pay $1,185,704.77 in restitution to Hills Bank, a figure reflecting the full scope of the financial harm. On top of that, he must pay $200 to the Crime Victims’ Fund and serve five years of supervised release following his prison term. The 13-month sentence will be served concurrently on both counts.
The Federal Bureau of Investigation led the investigation, peeling back layers of paperwork to expose Gretter’s deception. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa, underscoring federal scrutiny of financial fraud even in smaller communities. Bank fraud, prosecutors emphasized, isn’t a victimless crime—it erodes institutional trust and can ripple through local economies.
Thomas D. Gretter’s fall from local resident to convicted felon serves as a stark reminder: falsifying financial documents carries steep consequences. As he begins his sentence, the restitution looms large—over $1.1 million owed to a bank that relied on honesty. For now, the records stand clear—Gretter lied, the bank paid, and the justice system responded.
Related Federal Cases
- Charles Williams Sentenced in Bank Robbery Ring Takeover · Washington
- FDIC Appoints Five New Members to Advisory Committee on Community Banking · Mississippi
- Attorney General James Co-Leads Coalition to Save Humanitarian Parole Program · Pennsylvania
- Live Nation Faces Trial Over Monopoly Practices · Washington
- Drake Sentenced for Bank Fraud · Iowa
Key Facts
- State: Iowa
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
