(KOIN) – A former loan officer accused of causing West Coast Bank to lose $2.6 million by approving fraudulent loans for a now defunct development company has plead guilty to multiple charges.
Fifty-year-old Jeffrey Sprague of Bend plead guilty Thursday in U.S. District Court in Eugene to conspiracy to make false statements to a financial institution, conspiracy to commit wire fraud and conspiracy to commit bank fraud.
The Oregon Department of Justice alleged that when Sprague was a loan officer with the WCB, he falsified home loan applications for employees with Desert Sun Development (DSD), a Bend development and construction company which has since collapsed.
On the applications, Sprague reportedly inflated the employees’ monthly incomes and claimed the homes were going to be their primary residences, when in fact Sprague knew they were part of a DSD flipping scheme.
Sprague is one of 13 people who have pleaded guilty in the DSD case, which was jointly investigated by the FBI, IRS and Oregon Division of Finance and Corporate Securities.
His sentencing is scheduled for Sept. 13. He faces a maximum of five years in prison and a $250,000 fine.