In a release, the Federal Bureau of Investigation revealed a former SVP at Bank of America in Las Vegas, pleaded guilty to misapplication of bank funds in a scheme leading to more than $6.4 million in losses to BOA on two business loans.
Justin T. Brough, 39, of North Las Vegas, pleaded guilty in federal court to one count of misapplication of bank funds before U.S. District Judge Andrew P. Gordon of the District of Nevada. A sentencing hearing is scheduled for May 28, 2015.
According to court documents, Brough was an SVP at BOA in Las Vegas, serving as a business banking market executive, and providing financial services to high-net-worth clients.
Brough admitted to misapplying bank funds in connection with two business loans: a $6.3 million short-term construction loan and $600,000 credit line in connection with a business acquisition. Brough admitted neither borrower qualified for the loans because they did not meet the bank’s underwriting requirements. Brough further admitted to falsifying documents, including forging signatures on loan papers, to help the borrowers obtain the loans.
According to Brough’s admissions, when the borrowers had trouble making payments on the loans, Brough misused the bank’s general ledger fund to make a total of $436,676 in loan payments for the borrowers. Brough admitted he disguised those payments as “miscellaneous adjustments” and fee refunds. He also admitted to keeping the individual payments under $10,000 to avoid needing additional approval within BOA.