Kent Bank Exec Charged With Fraud, Demanding Bribes

KENT, OH – The former vice president at Hometown Bank in Kent has been charged with defrauding the bank out of at least $160,000 and demanding bribes in return for approving loans, said authorities. Steven P. McDonald, 43, of Kent, was charged in an 18-count criminal information with bank fraud, receipt of a bribe by a bank official, filing false tax returns and other charges.

McDonald was employed as a commercial loan officer and then vice president of commercial lending at Hometown Bank. McDonald, in 2011, submitted an application for a $225,000 loan in the name of a friend, without that friend’s knowledge. McDonald directed the statements to be mailed to a post office box he controlled and withdrew approximately $223,000 to pay personal debts, according to court documents.

McDonald made some payments on the loan but Hometown sustained a loss of approximately $160,000 from his conduct, court documents indicate.

McDonald also solicited and demanded bribes in return for approving loans for bank customers, said authorities. These bribes came in the form of cashier’s checks totaling approximately $80,000 and a personal loan from a bank customer to McDonald in the amount of $165,000, according to court documents.

McDonald also falsified bank records and failed to pay taxes on the income he derived from the fraud scheme, according to court documents.

The case is being prosecuted by assistant U.S. Attorney Robert J. Patton following an investigation by the FBI.

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