By THE HERALD-WHIG STAFF
ST. LOUIS -- A Pittsfield, Ill., man was sentenced Thursday to 14 months of imprisonment and five years of supervised release in connection with charges that he overstated the accounts receivable of his business on a multimillion-dollar line of credit he obtained in June 2008.
Douglas Pennock, 45, pled guilty to one count of bank fraud last August and appeared for sentencing before U.S. District Judge Henry Autrey inside the federal courthouse in St. Louis.
Pennock owned, operated and was affiliated with a number of businesses, including a business known as JDL Longhorn, Inc., with principal offices in Pittsfield. JDL Longhorn provided services relating to the construction of animal confinement systems.
According to court documents, JDL Longhorn arranged for a line of credit in May and June 2008 with Peoples Bank in Troy, Mo. Most of the funds from that line of credit were used to pay down earlier loans to other banks. As part of obtaining credit, Pennock provided false information regarding the status of the accounts receivable for JDL Longhorn.
JDL Longhorn defaulted on the loan, resulting in a substantial loss to Peoples Bank.
This case was investigated by FDIC Office of Inspector General, the Federal Bureau of Investigation, and the Board of Governors of the Federal Reserve System Office of Inspector General. John Bodenhausen handled the case for the U.S. Attorney's Office.