An Iowa man has been sentenced to federal prison for orchestrating a multi-million dollar bank fraud scheme involving check kiting between two banks in Missouri and Iowa.
Roger Dean Peters, 71, of Iowa, was sentenced this week to 12 months and one day in federal prison without parole after pleading guilty to one count of bank fraud. U.S. District Judge Roseann Ketchmark also ordered Peters to serve two years of supervised release following his prison term and to pay restitution.
According to court records, Peters carried out the scheme by writing checks between accounts he controlled at Exchange Bank of Missouri and First National Bank of Hampton in Iowa. The check kiting scheme allowed Peters to create artificially inflated account balances, which he maintained by continuously writing additional checks between the accounts.
The scheme ultimately collapsed, leaving a combined overdraft of nearly $2.9 million — $2,882,904.20 — excluding additional fees and costs.
Prosecutors also said Peters held a line of credit during the scheme and used an intermediary to submit fraudulent claims in order to access funds.
The case was investigated by the Federal Bureau of Investigation (FBI) and prosecuted by Assistant U.S. Attorney Lauren E. Kummerer.
