A 57-year-old New Athens man has been sentenced to 2 1/2 years in prison for defrauding a Missouri bank of nearly $3 million by lying on a small business loan application.
While pleading guilty in August, Roger Allen Strong Jr. admitted he lied on an application to obtain a $2.99 million small-business loan from First Midwest Bank of the Ozarks in Scott County, Missouri, according to a release from the U.S. Attorney’s Office for the Eastern District Court of Missouri.
He told bankers he was establishing a company to manufacture locks and operate the business — including about $500,000 for construction, according to officials.
However, the release said, Strong used more than $750,000 of that loan to pay off existing debts not related to the lock company. That was specifically prohibited in the loan agreement.
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In addition to his prison sentence, Strong was ordered to pay the entire loan amount back to the bank.