Police: Former bank VP who demanded cash for loan approvals charged

Police: Former bank VP who demanded cash for loan approvals charged
Giving Tuesday, Nov. 28, 2017. (Source: WOIO)

KENT, OH (WOIO) - The former vice president of Hometown Bank in Kent has been charged with defrauding his employer out of at least $160,000 and demanding bribes in return for approving loans.

Steven P. McDonald, 43, was charged in an 18-count criminal information with bank fraud, receipt of a bribe by a bank official, filing false tax returns and other charges.

According to the information, in 2011, McDonald submitted an application for a $225,000 loan in the name of a friend, without that friend's knowledge.

McDonald directed the statements to be mailed to a post office box he controlled and withdrew approximately $223,000 to pay personal debts.

McDonald made some payments on the loan but Hometown sustained a loss of approximately $160,000 from his conduct, according to the information.

The charges detail McDonald also corruptly solicited and demanded bribes in return for approving loans for bank customers. These bribes came in the form of cashier's checks totaling approximately $80,000 and a personal loan from a bank customer to McDonald in the amount of $165,000.

McDonald also falsified bank records and failed to pay taxes on the income he derived from the fraud scheme, according to the information.

At the time, McDonald was employed as a commercial loan officer and then vice president of commercial lending at the bank.

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