Five former officers and employees of the now-defunct Banc-Serv Partners LLC in Westfield, Indiana have been convicted by a federal jury in Indianapolis. The defendants were found guilty in a 13-year-long scheme to defraud the U.S. Small Business Administration (SBA) of $5 million. The U.S. Department of Justice says Banc-Serv secured SBA loans that were ineligible for guarantees on behalf of lending institutions they served.
The Justice Department says Kerri Agee of Noblesville served as president and chief executive officer. She was convicted of one count of conspiracy to commit wire fraud affecting a financial institution and four counts of wire fraud affecting a financial institution. Kelly Isley of Westfield, who served as chief operating officer, and employee Nicole Smith of Indianapolis were both convicted of one count of conspiracy to commit wire fraud affecting a financial institution and two counts of wire fraud affecting a financial institution. Chad Griffin of Carmel, who served as chief marketing officer, was convicted of one count of conspiracy to commit wire fraud affecting a financial institution. Matthew Smith of Westfield, who was a co-founder and board director, was convicted of one count of conspiracy to commit wire fraud.
The case related to the accused submitting fraudulent information to the SBA to obtain loan guarantees that were subsequently sold to investors for a substantial profit. The defendants face 20-30 years in prison for each count. A sentencing date has not been set.