The president of a bank in southern Illinois Thursday admitted to a scheme to falsify bank records to facilitate real estate loans.
Steven Cook pleaded guilty in U.S. District Court in Benton to three felony counts of aiding and abetting the making of a false bank entry.
Cook was the president of SouthernTrust Bank at the time, which has branches in Marion, Vienna and Goreville. Cook was also on the bank’s board and was a member of its loan committee.
Cook admitted fraudulently facilitating three different sales of real estate to Lawler and Maze Properties LLC in 2022.
In one transaction, Cook approved a loan that funded the sale of seven commercial rental properties in Williamson and Franklin counties from Results Home Buyers 2 to Lawler and Maze, the plea agreement says.
The transaction was a new purchase of real estate, not a refinance, and the buyers were not using any cash to fund the purchase.
During an April 6, 2022, meeting with the seller and buyer, Cook and the others agreed to fraudulently make it appear as if the loan was a refinancing, however, and the bank would supply the cash to make the purchase.
They agreed to backdate documents to falsely indicate the buyer purchased the properties on Feb. 1, 2022, for a falsely inflated price of $545,152. The documents also falsely indicated that the bank was refinancing 80% of that loan, with the buyers bringing 20% in cash to the sale.
The real sales price for the properties was $436,122, and the buyers were not bringing any cash to the transaction. The bank’s loan to the buyers was approved by the bank’s loan committee based upon the false information.
Results Home Buyers 2 is partially owned by former Williamson County State’s Attorney Brandon Zanotti, who was sentenced in May to two years of probation, a $5,000 fine and 20 hours of community service for his role in the scheme.
In August of 2022, Cook facilitated a second real estate transaction with Lawler and Maze involving four properties.
Cook, Lawler and Maze and the seller agreed that the real estate contract would falsely list the sales price of $413,000 instead of the actual price of $330,400, and falsely stated that the buyer would supply $82,600 in cash.
Finally, during November of 2022, Cook facilitated an additional loan to Lawler and Maze for the purchase of a property in Marion. Bank documents falsely stated that the borrowers would supply $21,500 cash, and Cook was aware that the false loan details were presented to the bank board for approval.
Cook’s sentencing hearing has been set for September 19. His ultimate sentence will be determined by the court based on the advisory sentencing guidelines and other statutes.
