Newbern man pleads guilty to bank fraud
Posted: Tuesday, November 11, 2008 8:44 pm
PADUCAH, Ky. (AP) — A West Tennessee man has pleaded guilty to bank fraud and other charges involving loans obtained from a Kentucky bank and the Tennessee Valley Authority.
Prosecutors said Monday that 66-year-old Neal Gordon Wall of Newbern obtained a $500,000 loan from the TVA five years ago and a $5 million loan from Citizens Bank of Hickman, Ky., a couple of months earlier.
The loans restricted the use of the proceeds to expenditures related to the operation of a textile plant that Wall and co-defendant Lloyd Aaron Smith opened in Hickman, but some of the proceeds were allegedly used for unrelated businesses.
Wall pleaded guilty to bank fraud, mail fraud and money laundering charges and is to be sentenced Feb. 11 in federal court in Paducah.
Smith pleaded guilty last month to the same charges and is to be sentenced Jan. 14.