clock menu more-arrow no yes

Filed under:

Former Will County bank officials plead guilty to altering records

Two former employees of a Will County bank have pleaded guilty in federal court to changing the bank’s records to conceal past-due loans, which ultimately cost the bank more than $1 million.

Martin E. Schmidt, Jr., 57, and Donna M. Barber, 53, have both pleaded guilty to making false bank reports and will be sentenced next year, according to a statement from the U.S. Attorney’s office.

Schmidt was the senior vice president for lending and a member of the board of directors of First Community Bank and Trust, which serves Beecher and Peotone, the statement said. Barber was the vice president for mortgage lending.

Schmidt and Barber knew that two of the bank’s customers could not make payments on various loans totaling $2.8 million, prosecutors said. The pair agreed to make false entries in the bank’s records for more than a year to hide the delinquent accounts.

The scheme caused the bank to lose more than $1.18 million, prosecutors said.

Schmidt, of Beecher, faces between 41 and 51 months in prison, according to his plea agreement. Prosecutors have agreed to recommend a 22-month sentence for Barber, also of Beecher, because of her cooperation.

First Community Bank and Trust also cooperated in the federal investigation, the U.S. attorney’s office said. Federal authorities announced the pleas on Monday.