Virginia Businessman Sentenced for Wire Fraud
Illegal Kickbacks Paid to Ankeny Banker

DES MOINES, IA—Earl A. Layne, 42, of Richmond, Virginia, was sentenced to 12 months and one day of imprisonment for wire fraud, announced United States Attorney Nicholas A. Klinefledt. Sentence was imposed by Senior District Judge Ronald E. Longstaff. Judge Longstaff also ordered Layne to pay restitution of $491,017.95 and serve a term of three years of supervised release after Layne completes his prison term. Layne was ordered to self-report to a facility to be designated by the Federal Bureau of Prisons at a later date.

Layne pleaded guilty to two counts of wire fraud on February 28, 2011. Layne represented professional athletes in connection with their financial affairs and did business under the names “Legends Consulting” and “Frontline Management.” During 2004 and 2005 he obtained a series of loans from Community State Bank in Ankeny, Iowa. In his written plea agreement, Layne admitted to submitting multiple false financial statements to the bank and, additionally, to paying a $30,000 kickback to the loan officer, Brian Williams. Layne also admitted that he used part of the loan proceeds for personal expenses, rather than for business purposes as represented to the bank. Altogether, Layne fraudulently obtained loans of $491,117.95, which were never paid off.

Williams, the loan officer, previously pleaded guilty to conspiracy to commit bank fraud and was sentenced to 24 months’ imprisonment on March 28, 2011.

“This office continues its commitment to thoroughly investigate and vigorously prosecute persons who commit acts of fraud against Iowa’s federally insured financial institutions,” stated United States Attorney Klinefledt. “The sentences imposed on both Mr. Layne and Mr. Williams should send a strong message to the community that fraudulent conduct by bank customers and bank employees will not be tolerated.”

Weysan Dun, Special Agent in Charge of the FBI, Omaha Division stated, “This conviction sends a clear message that those who defraud financial institutions will be brought to justice. We will continue to work vigorously with the U.S. Attorney’s Office and our law enforcement partners to investigate these crimes.”

This case was investigated by the Federal Bureau of Investigation - Des Moines Resident Agency and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.