Metro-east banker sentenced for his part in loan fraud scheme to help a relative
A federal judge has sentenced a former metro-east banker to probation for approving dozens of fraudulent loans as part of a scheme to help his brother-in-law, a local developer.
Francis “Frank” Eversman, 75, of Collinsville, was sentenced to three years of supervised release. He received credit for time served after spending one day in custody before being released on a personal recognizance bond.
Eversman must also pay a $9,500 fine and complete 40 hours of community service. Chief Judge Nancy Rosenstengel of the U.S. District Court for the Southern District of Illinois handed down the sentence at the federal courthouse in East St. Louis on Thursday afternoon.
Eversman served as a senior loan officer at the former Tempo Bank in Trenton for 45 years, from 1976 until the fraud was discovered in 2021. His brother-in-law is Gregg Crawford, 65, a contractor from Columbia and former Belleville resident.
Both he and Crawford pleaded guilty to conspiracy to commit bank fraud on June 23.
Crawford’s sentencing hearing has been rescheduled for Jan. 22. The reasons for the delay are sealed in the court record.
As part of their scheme, “straw buyers” recruited by Crawford obtained mortgage loans and pretended to purchase highly overvalued properties from his companies, according to past Belleville News-Democrat reporting and an analysis of St. Clair County property sales.
Crawford was an officer for the construction companies Main Street Developers LLC and Mid America Contracting Inc.
The straw buyers allowed the men to circumvent bank protocols that prohibited loans exceeding a certain percentage of the bank’s assets to one individual, according to statements made during Thursday’s hearing. Additionally, residential loans carry lower interest rates than commercial loans, which are considered higher risk for banks.
The properties’ inflated appraisals were based on promises of future renovations and improvements. However, Crawford used some of the proceeds for other purposes, according to facts agreed upon by Crawford, Eversman and federal prosecutors.
Eversman reviewed and approved a total of 30 fraudulent loans between about November 2011 and March 2017, the record states.
‘What I did was wrong’
Defense attorney Jan Paul Miller told the judge Thursday that Eversman did not profit from the scheme and that neither man intended to harm the bank. Instead, they believed the loans “would be just fine,” Miller said. No restitution is required because all the loans have been repaid.
“This wasn’t a Ponzi scheme,” Miller said during the hearing. “This wasn’t someone with evil intent.”
Eversman addressed the court to express remorse.
“I’d just like to apologize for all the trouble and embarrassment. What I did was wrong, and I’m sorry,” Eversman said. “I loved that bank.”
Assistant U.S. Attorney Kevin Burke, who is prosecuting the case, argued that Eversman had a duty to follow the bank’s rules and not “give special treatment” to a relative as part of a yearslong scheme.
Rosenstengel cited Eversman’s remorse as part of her reasoning for the reduced sentence. The charge carried a maximum possible imprisonment of 30 years.
The judge also highlighted Eversman’s age and the low likelihood that he would reoffend, noting that his only other criminal conviction was for driving under the influence almost 30 years ago.
Vacant and derelict Belleville properties
Available court records and public statements from the U.S. Attorney’s Office have not included details about how Crawford spent the loaned money beyond renovations. Burke said Thursday that investigators believe Crawford may have used part of the loans toward other business investments.
Burke added that any profits Crawford may have made from other projects were not part of the criminal case’s discovery process.
Miller said some of the properties were renovated and flipped, which is how Crawford made the loan payments.
Other properties Crawford purchased in Belleville and Swansea have been sitting vacant for years and are considered derelict by neighbors and city officials, according to past interviews and analysis by the BND. A handful of historic homes on the properties were demolished.
About 20 people attended Thursday’s sentencing hearing. Most were Eversman’s friends and family. After Rosenstengel announced the sentence would not include prison time and concluded the hearing, they celebrated with hugs and handshakes.
