Jefferson Builder Pleads Guilty to Bank Fraud

Stephen P. Sinnott, United States Attorney for the Western District of Wisconsin, announced that Brian S. Johnson, 52, Jefferson, Wis., pled guilty today before Chief U.S. District Court Judge Barbara B. Crabb. Johnson pled guilty to bank fraud and faces maximum penalties of 30 years in prison and a $1 million fine. Johnson will be sentenced at 1:30 p.m. on May 6, 2010. The indictment to which Johnson pled guilty alleged that he took out eight loans, totaling more than $4.5 million, from the Evergreen State Bank, Stoughton, Wis. Johnson admitted today that he provided false documentation to the Evergreen State Bank which indicated that he would use loan proceeds to pay subcontractors and for other expenses to repair or construct buildings in Jefferson, Oconomowoc, and Hartford, Wis. In fact, as Johnson admitted today, he used the loan proceeds for personal expenses, to repay other loans, or to pay subcontractors for work done on other properties. Posted in: Internal Fraud