Bankers Plead Guilty in Loan Scam

Two northern Kentucky bankers pleaded guilty today to bank fraud charges that arose from a scandal involving a Cincinnati-area home builder.  Bankers John Finnan and Marc Menne entered their guilty pleas in U-S District Court in Covington, Kentucky under an agreement with federal prosecutors. Finnan was the former president of the Peoples Bank of Northern Kentucky; which is now closed. Menne was the former executive vice president. According to prosecutors both men were involved in wrongdoing including mis-applying bank funds to cover overdrafts for the Erpenbeck Company, a company that built houses and condominiums in Kentucky and Ohio. Finnan and Menne are awaiting sentencing. They face maximum penalties of 30 years in prison and a one million-dollar fine. The former president of the collapsed home-building company, Bill Erpenbeck, is serving 30 years in prison. Erpenbeck pleaded guilty to bank fraud and conspiring to obstruct an official investigation.