Kansas Cattleman Pleads Guilty to Bank Fraud

Joseph C. Donohue, 70, Greeley, Kan., has pleaded guilty to one count of bank fraud, U.S. Attorney Lanny Welch said today. He also agreed to a monetary forfeiture judgment of more than $9 million. In his plea, Donohue admitted he provided false information to Lyons State Bank in order to obtain loans for purchasing and feeding cattle. In November 2007, Donohue signed a promissory note to the bank for more than $7.6 million. To secure the debt, he granted the bank an interest in all livestock he owned and he agreed to provide quarterly inventory reports on his cattle. Posted in: Deposit Account Fraud