.....Advertisement.....
.....Advertisement.....

Taylor Co. business owner sentenced for bank fraud

-A A +A

Ordered to pay $506,684.37 restitution

 BOWLING GREEN – United States Attorney John E. Kuhn, Jr. today announced the sentencing of a Taylor County, Kentucky, business owner, in United States District Court this week, by United States District Judge Greg N. Stivers, to serve a 4 month prison term, and ordered to pay restitution totaling $506,684.37 for committing bank fraud.

William K. Collins, 68, was charged by grand jury indictment on November 18, 2015, and pleaded guilty to a single charge of bank fraud on June 28, 2016. According to the plea agreement, Collins admitted that between April 1, 2013 through May 31, 2014, he knowingly executed a scheme to defraud financial institutions, including Community Trust Bank and United Citizens Bank of Southern Kentucky, by means of materially false or fraudulent pretenses, representations or promises.

During the relevant time, Collins did business under various names, including Bill Collins Oil Company, Inc. and Fastrack Stores. Collins established and maintained a business bank account for Bill Collins Oil Company, Inc. at Community Trust Bank, and for Fastrack Stores at United Citizens Bank of Southern Kentucky. As part of this scheme to defraud, he cross-deposited insufficiently funded checks between his Community Trust Bank account for Bill Collins Oil Company, Inc., and his United Citizens Bank of Southern Kentucky account for Fastrack Stores.

The scheme utilized banking system "float" periods to generate artificially inflated account balances that allowed the insufficiently funded checks to clear. Following the creation of the artificially inflated account balances, Collins admitted that he defrauded Community Trust Bank and United Citizens Bank of Southern Kentucky by obtaining unauthorized control over federally insured moneys in the control of Community Trust Bank and United Citizens Bank of Southern Kentucky. Further, Collins admitted to knowingly cross-depositing insufficient fund checks into his company bank accounts thereby artificially inflating account balances which he used for purposes of self-enrichment and commercial benefit.

This case was prosecuted by Assistant United States Attorney Amanda E. Gregory, and was investigated by the Federal Bureau of Investigation (FBI).