LAS VEGAS (CN) - A former senior vice president admitted he cost Bank of America $6.4 million by misapplying funds for rich clients and manipulating their accounts when they missed payments.
Justin T. Brough, 39, of North Las Vegas pleaded guilty Monday to a federal count of misapplication of bank funds. He will be sentenced on May 28.
Brough provided financial services to high net-worth clients.
He admitted he misapplied bank funds in two business loans: a $6.3 million short-term construction loan, and a $600,000 line of credit for acquisition of a business.
He admitted that neither borrower qualified for the loans because they did not meet the bank's underwriting requirements.
He also admitted that he falsified documents and forged signatures to help both borrowers get the loans, the FBI said in a statement.
When the borrowers had difficulty making payments, Brough misused the bank's general ledger fund to make $436,676 in payments for them. He disguised those payments as "goodwill," "miscellaneous adjustments" and refunds.
He also admitted that he kept each of the individual payments under $10,000 so he would not need additional bank approval.
Both borrowers defaulted on the loans.
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