A former Lawrence banker has been sentenced to five years in federal prison for his role in a loan scheme that forced several Kansas banks to write off millions of dollars in losses.
Troy Gregory, 53, of Lawrence was also ordered to pay $4.7 million in restitution, the Lawrence Journal-World reported.
He was convicted in August 2019 of four counts of bank fraud and two counts of false statements.
In 2007, Gregory, a former executive and loan officer at University National Bank in Lawrence, tried to secure a $15.2 million construction loan for bank customers who wanted to build an apartment complex in Junction City.
The loan was spread to 25 other Kansas banks.
Prosecutors said Gregory misrepresented the strength of the borrowers, and made other false statements to secure the loan.
He also used more than $1 million from the loan for uses other than building the apartments.
The banks who participated in the loan lost approximately $5 million on the fraud scheme, the U.S. Attorney’s office said.