BENTON, Ill. -- The former president of the SouthernTrust Bank in southern Illinois pleaded guilty to falsifying bank records on Thursday.
Steven Cook appeared in U.S. District Court in Benton for three felony counts of aiding and abetting the making of a false bank entry, according to a release from the Office of the United States Attorney Eastern District of Missouri (USAEDM).
The USAEDM release stated Cook was the president of SouthernTrust Bank at the time and was on the bank's board and a member of its loan committee.
According to the SouthernTrust Bank's website, they were chartered in 2005 and have branches located in Vienna, Goreville and Marion, Illinois.
Cook admitted fraudulently facilitating three different sales of real estate to Lawler and Maze Properties LLC in 2022, the USAEDM statement read.
"In one transaction, Cook approved a loan that funded the sale of seven commercial rental properties in Williamson and Franklin counties from Results Home Buyers 2 to Lawler and Maze, the plea agreement says," USAEDM stated in the release.
USAEDM also detailed the transaction was a new purchase of real estate and not a refinance. The buyers were reportedly not using cash for the purchase.
"During an April 6, 2022, meeting with the seller and buyer, Cook and the others agreed to fraudulently make it appear as if the loan was a refinancing, however, and the bank would supply the cash to make the purchase. They agreed to backdate documents to falsely indicate the buyer purchased the properties on Feb. 1, 2022, for a falsely inflated price of $545,152. The documents also falsely indicated that the bank was refinancing 80% of that loan, with the buyers bringing 20% in cash to the sale. The real sales price for the properties was $436,122, and the buyers were not bringing any cash to the transaction. The bank’s loan to the buyers was approved by the bank’s loan committee based upon the false information," USAEDM stated in the release.
Former Williamson County State's Attorney Brandon Zanotti was reported as partially owning Results Home Buyers 2 and was sentenced in May.
USAEDM reported in August of 2022, Cook facilitated a second real estate transaction. This transaction was reportedly with Lawler and Maze which involved four properties. USAEDM stated, "Cook, Lawler and Maze and the seller agreed that the real estate contract would falsely list the sales price of $413,000 instead of the actual price of $330,400, and falsely stated that the buyer would supply $82,600 in cash."
In November of 2022, Cook reportedly facilitated an additional loan to Lawler and Maze for purchasing a property in Marion, the statement read. It also said the bank documents falsely stated that the borrowers would supply $21,500 cash, and Cook was aware that the false loan details were presented to the bank board for approval.
“The lack of professional responsibility demonstrated by Steven Cook diminishes the faith consumers place in the banking process,� said FBI Springfield Field Office Acting Special Agent in Charge Shannon Fontenot. “Financial fraud is a serious crime with serious consequences and the FBI will investigate anyone who takes advantage of their trusted position of employment for their own personal gain.�
“The Federal Housing Finance Agency Office of Inspector General (FHFA OIG) is committed to investigating and prosecuting allegations of mortgage-related fraud, including fraud committed by officers of financial institutions who have a duty to conduct honest business,� said Korey Brinkman, Acting Special-Agent-in-Charge of FHFA OIG’s Midwest Regional Office. “We are proud to have partnered with our FBI colleagues on this case.�
A sentencing hearing is set for Cook for September 19, 2024. Ultimately, the sentence will be determined by the court based on the advisory sentencing guidelines and other statutory factors, according to the USAEDM.
The release continued detailing David Lawler and Justin Maze as the owners of Lawler and Maze. Both Lawler and Maze were entered into a pretrial diversion program and acknowledged their involvement in the criminal conduct by aiding and abetting Zanotti and Cook, the release noted.
"As a condition of pretrial diversion, Maze was required to resign from his position as Williamson County Circuit Clerk and agreed not to seek re-election to any public office. Lawler’s conduct was reported to the Illinois Attorney Registration and Disciplinary Commission," USAEDM detailed.
The FBI Springfield Office investigated the case with help from the Federal Housing Finance Agency Office of Inspector General.Â
