Former Bank Execs Plead Guilty To Fraud

Finan, Menne Face Up To 12 Years In Prison

ERLANGER, Ky. -- Two former bank executives who took part in the Erpenbeck homebuilding scandal pleaded guilty Tuesday as part of a plea agreement.

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Sentencing Comes In October

Marc Menne and John Finnan face up to 12 years in prison for pleading guilty to three counts of fraud, WLWT Eyewitness News 5's Juliette Vara reported.

Finnan is the former president of Peoples Bank of Kentucky, and Menne is the bank's former executive vice-president. Both admitted to helping former homebuilder Bill Erpenbeck divert millions of dollars from home closings to corporate accounts.

"The theory in this case is that the participating banks made loans on information that they didn't have or inaccurate information," said Harry Hellings, Menne's attorney. "That's the whole theory of the government's case as it relates to the bankers."

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Finnan and Menne fraudulently obtained $24 million from several banks, Vara reported. Erpenbeck was sentenced to 30 years in prison for his role.

"The bottom line here, I think, appears to be greed," U.S. attorney Greg Van Patenhove said. "They had a sweetheart deal with the Erpenbecks that allowed them to line their pockets and what also looked like a kickback to Bill Erpenbeck, and they had a huge incentive in the midst of this company that was crumbling around them to keep it propped up."

Prosecutors said Finnan and Menne provided information that could lead to additional prosecutions, according to WLWT.

Finnan and Menne will be sentenced in October. Had they chosen not to take part in the plea agreement, they faced up to 30 years in prison for each fraud charge if convicted.

Stay tuned to WLWT Eyewitness News 5 and ChannelCincinnati.com for updates.

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