Homewood man among 4 convicted in loan fraud scheme

A Homewood man, Brian K. Hughes, 41, was convicted Friday of four counts of bank fraud, according to a news release from the U.S. Attorney's Office, Northern District of Illinois.

Hughes is the president of Hughes Corporate Consulting.  He was convicted by a jury Friday of four counts of bank fraud and one count of making false statements on a loan application.  Sentencing is set for June 2015.

Hughes was one of four defendants in the case. Two of the defendants, Keith B. Foster, of Harvey, and Crystal Williams, of Decatur, Ga., pleaded guilty in October. Precious W. House, of Chicago, also was convicted by jury Friday.

The federal bank fraud charges were for engaging in a scheme to fraudulently obtain 51 luxury automobile loans totaling approximately $1.6 million without ever intending that the borrowers would purchase the high-end cars that they claimed to be buying, according to the news release. 

As a result, various credit union lenders, including Credit Union 1, Great Lakes Credit Union, Navy Federal Credit Union, Pentagon Federal Credit Union, and Sherwin-Williams Credit Union, incurred losses totaling at least $853,000.

According to court records, between February and November 2013, House and Hughes recruited individuals seeking loans and agreed to find loans for them in exchange for a fee of 20 to 30 percent of the loan.  The defendants obtained at least 36 automobile loans of the 51 total sought on behalf of the applicants, and the defendants fraudulently obtained approximately $1.12 million of the total $1.6 million for which they applied.

In order to obtain the loans, the defendants made, and caused the loan applicants to make, false representations in documents such as loan applications, vehicle purchase orders and verifications of employment.  If the individual applicants refused to cash checks obtained as part of the scheme, Hughes threatened them with civil lawsuits and criminal prosecutions, according to the U.S. Attorney's Office.
Each count of bank fraud and making false statements on loan applications carries a maximum penalty of 30 years in prison and a $1 million fine. Restitution is mandatory.  

About Us

A great community deserves a great newspaper. The HF Chronicle was created in June 2014 as an online publication. In December 2015 we began monthly print publication, too. Our mission is to chronicle the life of our community — news by, for, and about the people of Homewood and Flossmoor, Illinois.

Letters

Do you have something to say? If you want to inform the community about events, issues, recognitions, concerns, etc., write a letter. 

Send a letter

Correction suggestions

If you see a mistake in The Chronicle, whether it's a typo, a misspelling or an error of fact, please let us know. Our goal is to provide reliable, accurate stories, and if we miss a detail, we want to fix it fast.

Submit correction

Contact Us

A great community makes a great newspaper. We want to hear from you with news tips, story ideas, your photos and accounts of events, corrections, problems, suggestions, etc. Call or write the editors
Eric Crump at [email protected] or 630-728-2661
Marilyn Thomas at [email protected]
Tom Houlihan at [email protected]

For advertising, distribution or general business inquiries, contact Eric Crump at [email protected] or 630-728-2661.

Postal address:
The HF Chronicle
P.O. Box 461
Flossmoor, IL 60422