Eastern Kentucky real estate agent faces federal money laundering, fraud charges – InsuranceNewsNet

A Morgan County The real estate agent faced federal charges of fraud and money laundering after almost coming $170,000 into bank loans under false pretenses so he could repay debts to others and make up shortfalls in business accounts, according to court documents.

A federal grand jury claims Richard Rednour II committed fraud and money laundering after taking over more than 1 million dollars are in debt and try to cover the costs with illegally taken out loans.

Rednour is accused of involvement in schemes $169,357 out First National Bank by providing false justifications and false financial information in loan applications, according to court records.

According to court documents, Rednour was a real estate agent brokering real estate transactions and performing other property management and maintenance services at the time of the incidents.

He held ownership interests and controlled various business entities including Rednour and Associates Inc., The Appalachian Groupand the New leaf groupwho all had different accounts that Rednour ran Whitaker Bankaccording to court records.

According to court documents, Rednour amassed much of the debt through land purchases and loans from private lenders. He also took money from an escrow account and later used money from a loan to make up the shortfall in the account.

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in the March 2014Rednour agreed to purchase 63 acres of land in Morgan County to the 1 million dollarspay more than $22,000 at the time of closing and more than $977,000 in remaining costs in monthly payments, according to court records.

Monthly payments should start years after the contract is signed. According to court documents, Rednour also agreed to pay taxes, duties and other fees related to the land he purchased.

Years later, in 2018 and 2019, Rednour still owned the land and owed more than $900,000 to those from whom he allegedly bought it.

Charge: Real estate agent lied on loan applications to cover debt

After going into debt, Rednour got two loans from the First National Bank of Grayson that roughly added up $169,000. In 2018 a loan for approx $120,000 according to the indictment, on his behalf and on behalf of his wife.

He said the purpose of the loan is to pay off credit card debt and operating expenses arising from a contract between his company and the bank Kentucky housing associationaccording to court records.

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Another loan was applied for and approved in 2019 for approx $49,000, according to court records. The loan was requested on behalf of New leaf groupand Rednour said the loan was a “working capital” payout refinance.

In support of the motion, Rednour filed a personal financial report claiming ownership of a farm located on properties he had previously purchased, according to court documents.

According to court documents, Rednour borrowed money from private lenders that he did not disclose on the loan applications. According to court documents, a personal financial report underreported and omitted the hundreds of thousands of dollars Rednour owed to other private lenders.

Court documents show that in this way, Rednour knowingly attempted to execute a scheme by providing false information to the bank.

Real estate agent accused of using loans to cover escrow shortage

Rednour is accused of transferring money from three different people Whitaker Bank Accounts to disguise loans as a source of funds, which court records show he used to repay what he owed in an escrow account for certain real estate transactions.

Rednour had previously accepted payment from someone who had bought a property in Stanton and place the person’s payments in escrow to be held for the purpose of completing the transaction. But Rednour withdrew the money from the account and spent it on other transactions, according to court documents. At that time, the account lacked the necessary money for the sale of the property.

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Rednour allegedly used money from a bank loan to cover the shortage and allegedly did so by transferring money from three different people Whitaker Bank Accounts to disguise loans as a source of funds, which he used to repay his debts on the account, according to court records.

A case listed in the court filings describes how Rednour concealed and concealed the nature, location, source, ownership and source of the proceeds $23,000 transfer from one Whitaker Bank account to the escrow account January 2, 2019.

Rednour faces up to 60 years in prison and up to a maximum fine for all five counts $1,750,000. He could also have up to 11 years of total supervised release.

Rednour is scheduled to appear in federal court Lexington on 11 Octaccording to court records.

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