A Quad-Cities man is one of 16 people facing federal charges in relation to an alleged multimillion dollar fraud scheme in Missouri.|
Lindell L. Vawter, 65, Rock Island, has been charged with making false statements, including some to the federal Small Business Administration, according to federal court documents and a statement from the FBI.
The ring operated from January, 2005 to January, 2007 in western Missouri, the records state. The members allegedly worked together using false pretenses to get about $10 million in loans from Mid-America Bank and Trust Company in Pulaski County, Mo., the records state. The loans ranged from $100,000 to $1.6 million.
Federal records give detail after detail on how the ring operated, including falsifying paperwork to ensure a loan was approved or make it appear the loans were for one business when the money was actually going to someone else. Many of the loans defaulted, costing the bank and the SBA--which guaranteed portions of the loans.
Several of the alleged conspirators were business owners, including Mr. Vawter, the records state. He was the operator and owner of Vawter, Inc., running an A&W Root Beer/Long John Silver's restaurant in St. Robert, Mo.
Among Mr. Vawter's co-defendants was Larry Steven Aduddle, 63, of Springfield, Mo., the records state. Mr. Aduddle was the branch manager of the Springfield office of the Small Business Administration at the time of the conspiracy.
There were also several employees from the bank that were allegedly involved, including Richard N. DeLong, 44, of Newburg, Mo., and Melinda L. Reese, 37, of Dixon, Mo.
Mr. DeLong was executive vice-president and chief lending officer at MABTC at the time the fraud was taking place. Ms. Reese was a vice-president and handled loan compliance at MABTC from 1998 to 2008.
The records do not indicate whenMr. Vawter will next appear in court.