Local Man Sentenced In Bank Case
SIOUX CITY An Emmetsburg man, along with two others were sentenced Tuesday, Nov. 24, in the U.S. District Court in Sioux City for their involvement in a scheme to defraud the Iowa Trust & Savings Bank in Emmetsburg.
62-year-old Richard Jones, a former banker from Emmetsburg, along with 68-year-old Michael Manning of Milford and 37-year-old Aric Manning of Phoenix, AZ, were each convicted on one count of bank fraud. Jones received a sentence of 14 months imprisonment in the federal prison system and was also ordered to pay a special assessment of $100, along with restitution of $207,209 to Iowa Trust & Savings Bank. Jones must also serve a five-year term of supervised release, during which he must make presentations warning others of the consequences of engaging in bank fraud. He was also required to make a public acknowledgement of his guilt in several local newspapers.
Aric Manning was sentenced to 12 months and one day imprisonment, as well as being ordered to pay a $100 special assessment along with restitution of $58,049.17 to the bank. He must also serve a five-year term of supervised release after the prison term.
Mike Manning was sentenced to time served, or about one day, and was ordered to pay a special assessment of $100, as well as restitution of $27,460 to Iowa Trust & Savings Bank. He must also serve a three-year term of supervised release after his prison term.
Two other people involved in the scheme, 55-year-old Russ Salton of Ruthven, had earlier pled guilty to bank fraud, while 52-year-old Sue Salton of West Des Moines, pled guilty to making a false statement to a bank. Russ Salton was sentenced on Nov. 9 to 13 months imprisonment, along with a special assessment of $100 and restitution to Iowa Trust & Savings Bank in the amount of $121,700, as well as a five-year term of supervised release after the prison term. Sue Salton was sentenced on Oct. 23 to time served, roughly one day, along with a special assessment of $100 and was also ordered to forfeit $10,000 to the United States. She must also serve a three-year term of supervised release after the prison term.
According to federal court records, Jones, a former Senior Vice President of Iowa Trust & Savings Bank in Emmetsburg, used his position of trust to engage in two similar but separate schemes in which he deceived the bank into thinking third parties were taking out new loans in small amounts, when in fact he was actually directing the bank’s money to the Mannings and the Saltons, who had large amounts of debt.
Court documents state Jones forged the signatures of unknowing bank customers, repeatedly lied to and tricked fellow co-workers at the bank, and repeatedly committed identity theft.
According to court records the Jones-Salton scheme involved fraudulent loans totaling slightly more than $389,000 and the Jones-Manning scheme involved fraudulent loans worth a little more than $86,350. Authorities say neither of the loans could have been obtained without Jones personal involvement in the schemes.
Currently, Jones and the two Mannings remain free on bond previously set by the court, and will surrender at a future date to the Federal Bureau of Prisons for intake into the federal correctional system.
The case was investigated by the Federal Deposit Insurance Corporation, Office of Inspector General; The Iowa Department of Criminal Investigations; the Federal Bureau of Investiga- tions; the Small Business Administration, Office of Inspector General; and the Department of Veterans Affairs, Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Forde Fairchild.