Two Former Lanark businessmen owe $4M for bank fraud

A Milledgeville man and a Lanark man will pay a combined $4 million in restitution for bank fraud. U.S. District Judge Frederick J. Kapala sentenced Marvin Peugh, 56, of Milledgeville to 70 months in prison Tuesday for his convictions on bank fraud, one count of fraudulently obtaining loans and four counts of check kiting. Peugh was convicted Dec. 18 after a 15-day jury trial. Also charged in the indictment was Steven Hollewell, 63, of Lanark. He pleaded guilty March 30, 2009, to one count of bank fraud. According to the indictment, Peugh was president and Hollewell secretary of Grainary Inc., a former Lanark business engaged in purchasing, selling, drying and storing grain. At the same time, Peugh and Hollewell also were officers, shareholders and directors of Agri-Tech Inc., an Illinois corporation in custom farming services. The indictment said the two men managed the day-to-day operation of Grainary and Agri-Tech and between January 1999 and August 2000 both were involved in a scheme to defraud several banks by obtaining loans for Grainary by making false statements and representations to banks. Posted in: Check Fraud