Former Davenport banker sentenced for SBA fraud; Des Moines exec to be sentenced
A former Iowa banking executive accused of attempting to defraud the Small Business Administration has been sentenced to nine months in prison and ordered to pay $4.5 million in restitution, the Iowa Capital Dispatch reported. Larry Charles Henson of Davenport was president and chairman of the now-shuttered Valley Bank in Moline, Ill. He was accused of conspiring with others to shift millions of dollars in potential losses from Valley Bank to the SBA. Court records indicate Henson schemed with Michael Barry Slater of Des Moines, the founder and president of Vital Financial Services, a lending service provider based in Clive, to defraud the SBA. Henson was sentenced Tuesday by U.S. District Judge Stephanie Rose to nine months at the Federal Medical Center in Rochester, Minn., a federal prison for male inmates who require specialized or long-term medical care. According to prosecutors, Slater worked with Henson and other Valley Bank employees to engineer loans so that it appeared the borrowers qualified for SBA guarantees. Slater pleaded guilty in November to a charge of conspiracy to commit wire fraud, according to a Justice Department release, and his sentencing is scheduled for March 15.