Former KeyBank loan officer pleads guilty
A former loan officer for Casco Northern Bank and its successor KeyBank has pleaded guilty to charges of tax evasion and bank fraud that included more than $14 million of fraudulent loans in the names of four other people from 1995 to 2011.
The U.S. Attorney’s Office reported in a press release that Walter Scott Fox, 56, and formerly of Cumberland and now a resident of Canton, Georgia, used around $5.8 million in fraudulent loans to keep current another $8.2 million in loans. Prosecutors said Fox used that money to pay for his children’s educations, family vacations and to support his business, The Boathouse Corp. The scheme was revealed in 2012 when KeyBank denied an increase for one of the credit lines, leaving no funds to stay current on the loans, which fell into delinquency in August 2012.
Prosecutors said Fox evaded more than $1.3 million in taxes by not reporting any of the loan income to the Internal Revenue Service from 2006 to 2011, a charge for which he faces up to five years in prison and a fine of up to twice the amount of unpaid taxes. Fox faces up to 30 years in prison and up to twice the gain or loss on the bank fraud charge.
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