Department of Justice
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NEWS RELEASE
CONTACT: Fred Alverson
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MOTORWERKS OWNER SENTENCED ON BANK FRAUD CHARGE IN CONNECTION WITH CHECK KITING SCHEME |
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DAYTON – Mark VanNest, age 53, of Dayton, was sentenced in United States District Court today to 51 months imprisonment on one count of bank fraud in a scheme that involved depositing “kited checks” and fabricating VIN numbers through Motorwerks automobile dealership in Centerville. The scheme defrauded Liberty Savings Bank of nearly $3 million.
Gregory G. Lockhart, United States Attorney for the Southern District of Ohio, and Keith L. Bennett, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division, announced the sentence handed down today by United States District Judge Thomas M. Rose.
VanNest pled guilty to one count of bank fraud in September, 2007. According to the statement of facts filed with his plea, VanNest admitted that between March, 2001 and January, 2005 he made multiple deposits of “kited checks” drawn on various other banks into a Liberty Savings Bank zero balance account controlled by Motorwerks. “Check kiting “ involves the unlawful use of one or more checks or checking accounts in order to illegally acquire funds, by taking advantage of the “float” period or the time between the negotiation of the check and its clearance. VanNest also admitted to fabricating multiple vehicle identification numbers on cars sold by Motorwerks and then taking fraudulent checks written on his Day Air Credit Union line of credit and depositing them into the Liberty Savings account. As a result of the scheme, VanNest illegally obtained over $2.9 million in Liberty Savings Bank funds.
In addition to his 51 month prison term, VanNest was ordered to pay full restitution to Liberty Savings Bank. Payments toward restitution began after VanNest filed personal and business bankruptcy cases in 2005 and liquidated the assets of Motorwerks. At the conclusion of his jail term, VanNest must serve four years on supervised release, 100 hours of community service, and continue restitution payments to Liberty Savings.
“Bank fraud of this magnitude is extremely damaging to our lending institutions and the customers they serve, especially in the face of the current home foreclosure crisis in Ohio,” Lockhart said. “While Liberty Savings is the victim in this case, the entire community ultimately suffers.”
Lockhart also commended the efforts of the FBI for their investigation into this matter, and Assistant U.S. Attorney Dwight Keller who prosecuted the case.