https://hoodline.com/2024/07/two-illinois-men-sentenced-for-sophisticated-bank-fraud-and-money-laundering-scheme-involving-moline-s-first-midwest-bank/
Two Illinois men find themselves handed significant prison sentences after being convicted for a blend of financial crimes including bank fraud and money laundering. The sentencing, which took place on July 23, marks the culmination of a case involving Erik Richard Jones, 46, of Colona, and Mitchell Allen Melega, 38, formerly of Orion. According to a press release from the U.S. Attorney's Office, Jones received a sentence of 54 months while Melega is set to serve 75 months behind bars. Both men will also endure five years of supervised release and are ordered to pay restitution amounting to a whopping $4,840,944.63.
The charges stemmed from a scheme that unfolded between 2016 and 2017, wherein Jones and Melega apparently conspired to pass off false documentation to First Midwest Bank in Moline, Illinois. Their tactics were designed to secure loans under the pretense of vehicle acquisitions and improvements for I-80 Equipment, a company owned by Jones where Melega worked as controller. Funds from these loans were then improperly diverted to cover unauthorized expenses, a move which eventually led to their downfall. It was during this hearing that U.S. District Judge James E. Shadid determined the fraud involved was particularly "sophisticated," including altering and completely fabricating gambling documents over an array of at least 110 vehicle purchases.
In October 2020, a twelve-count indictment initially brought the duo into the legal spotlight, with charges including conspiracy to commit bank fraud, multiple counts of bank fraud, and money laundering. Jones pleaded guilty to all charges in September 2023, and Melega followed by pleading guilty in March 2024. The statutory penalties for their crimes could have escalated to 30 years of imprisonment for each count of conspiracy to commit bank fraud, and up to ten years for each money laundering count.
"Our office is dedicated to prosecuting these serious financial crimes," stated U.S. Attorney Gregory K. Harris. Harris highlighted that these kinds of actions bring "significant harm to banks and undermine the stability of our financial system." Special Agent in Charge Vincent R. Zehme of the FDIC OIG, Chicago Region, emphasized the commitment to "hold individuals accountable who commit such fraudulent offenses and threaten to undermine the integrity of our Nation's banks." IRS Criminal Investigation Special Agent in Charge Thomas F. Murdock issued a stark warning, conveying that the sentences should give pause to any who think of defrauding banks and escaping justice.
Federal agencies including the IRS, Criminal Investigation Division; the FDIC, Office of Inspector General; the FBI, Springfield Field Office; and the Illinois Secretary of State Police ran a collaborative investigation leading to the unraveling of Jones and Melega's activities. Assistant U.S. Attorneys John Mehochko and Jennifer Mathew were credited with representing the government's case in the successful prosecution of these financial crimes.
