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.