Former banker jailed for bank fraud and money laundering
BILLINGS, Mont. (AP) – A former Billings banker has been sentenced to one year in prison for authorizing bank loans to a man without disclosing his own private loans to the same man.
Stephen Phillip Kosher, 47, was sentenced on Friday after pleading guilty to bank fraud and money laundering, The Billings Gazette reports.
Kosher and many others have been charged over their dealings with former coal executive Larry Price Jr., who admitted to stealing $ 40 million through various schemes. Price was sentenced to five years in prison last October for defrauding Signal Peak Energy and two private investment groups to which Casher belonged.
Pleading guilty, Kosher admitted that he did not disclose a $ 900,000 private loan he made to Price in the days before signing a $ 3.75 million bank loan for Price. invests in a subdivision of Billings.
Kosher, who was chairman of the market at Rocky Mountain Bank, also admitted that he did not disclose a $ 1.5 million private loan that Kosher negotiated with Price in early 2015 before the bank loaned him. $ 1.18 million to buy five homes and turn them into rental properties. Kosher revealed that one of the houses was his.
Scott Sehnert, executive vice president and market chairman of Rocky Mountain Bank, said on Friday that it had been difficult to improve the bank’s reputation and that some bank employees had missed bonuses because of the losses.
Price defaulted on a $ 167,000 line of credit and over $ 180,000 on a credit card, court records show.
Defense attorney Mark Parker said Kosher lost $ 1.25 million on a loan to Price and was a member of another investment group that lost $ 10.3 million to Price.
“If he did a lot of damage, he hurt himself,” Parker said.
U.S. District Judge Susan Watters noted Kosher’s mastery and 17-18 years of banking experience.
“But what I keep coming back to with you, Mr Kosher, is that you knew better,” said Watters, who fined Kosher $ 50,000. No restitution has been requested or ordered.