Former legislator indicted for fraud
By MIKE CORN
A former Kansas legislator was indicted Wednesday on bank fraud charges stemming from loans he received from the Farmers and Merchants Bank of Colby.
The indictment against Trent K. LeDoux, 40, Holton, alleges at least some of the money made its way into his political account.
A Topeka grand jury returned the indictment Wednesday, charging LeDoux with three counts of bank fraud and two counts of money laundering. The crimes reportedly occurred in 2011 and 2012 when LeDoux was a member of the Kansas House of Representatives.
The indictment alleges LeDoux received three loans -- $106,600, $175,500 and $183,000 -- from the Colby bank. He reportedly told the bank he was going to use the money to purchase cattle that would be used as collateral on the loans.
"In fact, he did not intend to use all the funds to buy cattle, but to pay off existing debts and to make contributions to his political account," according to a news release from the U.S. Attorney's office.
The indictment didn't indicate why LeDoux decided to seek the cattle loans from the Colby bank. He also maintained an account at the Farmer's State Bank in Holton and a political account at Denison State Bank.
LeDoux received the money from the first loan in July 2011 in a cashier's check, while money from the two remaining loans were wire transfers.
In the two money laundering counts, the indictment alleges LeDoux transferred $15,000 on Dec. 31, 2011, and $12,000 on Aug. 1, 2012, to his campaign account. That money came from the last two loans LeDoux received from the Colby bank.
The indictment seeks a monetary judgment of $465,100.
If convicted, LeDoux faces a maximum penalty of 30 years in federal prison and a fine up to $1 million on each count of bank fraud, and a maximum penalty of 10 years and a fine up to $250,000 on each count of money laundering.