A Jackson man faces prison time after pleading guilty to submitting fake documents to a bank to maintain access to a $750,000 line of credit, according to a news release from the U.S. Attorney’s Office.
Charles Richard Barber, 65, pleaded guilty in U.S. District Court in Baton Rouge after he told the court he submitted false documents to Highlands Bank, so a company his employer partly owned could continue to use the funds it provided, U.S. Attorney Walt Green said in the news release Friday.
Barber worked in October 2014 for an entity that was part-owner of Hometown Credit, a company that provided short-term loans.
Highlands Bank partially funded Hometown Credit through a $750,235 line of credit, and the collateral for those funds was Hometown’s loan portfolio, according to the release.
For this reason, Highlands Bank had a vested interest in the company’s loan portfolio and required monthly reports from Hometown Credit.
When the company’s loan portfolio sharply declined in value, Barber sent false reports to the bank to keep access to the line of credit, Green said in the release.
Highlands Bank lost about $590,000 in the process, according to the release.
Barber faces prison time, and he will forfeit proceeds received during the fraud scheme.
The sentencing date has not been set.