jury convicted in check kite trial | USAO-KS

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TOPEKA, KAN. – A federal jury has convicted a Kansas man of 31 counts of bank fraud, one count of misrepresentation under a loan guaranteed by the Small Business Administration and one count of forgery statement in a loan or credit card application.

According to court documents and evidence presented at trial, Tyler Gillum, 51, of Plainville, owned and operated Plainville Livestock Commission Inc. from 2006 to 2019. Between January 2015 and August 2017, Gillum wrote checks and made wire transfers between various accounts under its control. at various banks under a system commonly referred to as a kite check. This is when checks are continually issued back and forth to fraudulently inflate account balances, prompting banks to honor checks issued with insufficient funds. Gillum’s scheme resulted in losses of more than $10 million for the banking system.

Gillum also requested and obtained a $1,500,000 loan, guaranteed by the US Small Business Administration, and a $500,000 line of credit from Almena State Bank, while hiding that he had previously signed a promissory note. to order of approximately $6.1 million from TBK Bank of Dallas, Texas.

“Because of the defendant’s crimes, the banks suffered millions of dollars in losses. These fraudulent acts should be of concern to everyone, because the stability of our nation’s banking system is vital to the financial health of this nation,” said U.S. Attorney Duston Slinkard of the District of Kansas.

The FBI, the USDA Office of Inspector General, the SBA Office of Inspector General, and the FDIC Office of Inspector General have investigated the matter.

US Attorney Duston Slinkard commends the work of Assistant US Attorneys Sara Walton and the late Richard Hathaway in preparing and prosecuting the case.

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