MONTGOMERY, Ala. (WSFA) - A former president of PrimeSouth Bank has been sentenced to a year in federal prison after pleading guilty to bank fraud.
Jimmy Allen Monk, 60, of Elmore County, was charged with bank fraud on Feb. 7 and entered a guilty plea less than two weeks later, according to U.S. Attorney Louis V. Franklin, Sr.
Monk will have two years of supervised release after serving his sentence and he’ll have to pay a $20,000 fine and $185,000 in restitution.
Court records showed Monk created a fraudulent scheme to illegally issue multiple loans from the accounts of existing bank clients without their knowledge. The money was then used to cover other loans that were past due or at risk of default.
Franklin’s office said Monk’s actions were done to cover up the real status of loans he’d approved and to prevent his removal as the bank’s president.
Citing one example, Franklin’s office said in June 2015, Monk obtained an unauthorized advance of $22,800 from a PrimeSouth Bank loan issued to the Elmore County Economic Development Authority and applied the proceeds of that advance to the unrelated loan accounts of other clients.
Investigators determined the scheme stretched over at least a 10-year period and involved hundreds of thousands of dollars in unauthorized loans. Franklin’s office said once the bank uncovered the activities, it credited the money back to all the affected accounts.