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Former Quad Cities Bank President Sentenced to Prison

The former head of a Quad Cities bank will have to go to prison and pay restitution after pleading guilty to wire fraud.

That was the sentence Tuesday in federal court in Des Moines for Larry Henson - nine months in prison, and restitution of 4.5 million dollars.

Henson was the president and chairman of the now-closed Valley Bank in Moline. And he was convicted of shifting millions of dollars in potential losses from the bank to the Small Business Administration.

In November, he pleaded guilty to one count of wire fraud.

Prosecutors believe he worked with a bank in the Des Moines area in 2011 and 2012 to make loans backed by the SBA, that the federal agency would have to pay back if the borrowers defaulted. Officials of the two banks submitted false records to make it look like borrowers qualified for loans.

The Small Business Administration lost a total of 34 million dollars.

Illinois regulators closed Valley Bank in 2014 due to what they called its "unsafe and unsound" financial condition.

A native of Detroit, Herb Trix began his radio career as a country-western disc jockey in Roswell, New Mexico (“KRSY, your superkicker in the Pecos Valley”), in 1978. After a stint at an oldies station in Topeka, Kansas (imagine getting paid to play “Louie Louie” and “Great Balls of Fire”), he wormed his way into news, first in Topeka, and then in Freeport Illinois. While a graduate student in the Public Affairs Reporting Program at the University of Illinois at Springfield (then known as Sangamon State University), he got his first taste of public radio, covering Illinois state government for WUIS. Here in the Quad Cities, Herb worked for WHBF Radio before coming to WVIK in 1987. Herb also produces the weekly public affairs feature Midwest Week – covering the news behind the news by interviewing reporters about the stories they cover.