Steven Cook, the former president of SouthernTrust Bank in Marion, Illinois, was fined $6,000 and sentenced to 50 hours of community service and two weekends in Illinois’ Jackson County jail for his role in a real estate fraud. He will also likely receive a lifetime ban from banking.
In June, Cook pleaded guilty in U.S. District Court in Benton to three felony counts of aiding and abetting the making of a false bank entry. Cook was the president of SouthernTrust Bank when he fraudulently facilitated three different sales of real estate to Lawler and Maze Properties LLC in 2022.
In one transaction, Cook approved a loan that funded the sale of seven commercial rental properties from Results Home Buyers 2 to Lawler and Maze, but Cook and the others agreed to fraudulently make it appear the loan was a refinancing, with the bank backdating documents to pretend the buyer purchased the properties for a falsely inflated price of $545,152. The documents also falsely indicated that the bank was refinancing 80% of that loan, with the buyers bringing 20% in cash to the sale. However, the real sales price for the properties was $436,122 and the buyers did not bring any cash to the transaction.
Results Home Buyers 2 is partially owned by former Williamson County State’s Attorney Brandon Zanotti, who was sentenced in May to two years of probation, a $5,000 fine and 20 hours of community service for his role in the scheme.
In a second transaction, Cook helped Lawler and Maze acquire four properties, with the stakeholders falsely presenting the sales price of $413,000 instead of the actual price of $330,400; the loan paperwork falsely stated that the buyer would supply $82,600 in cash.
In a third deal, Cook facilitated an additional loan to Lawler and Maze with documents that falsely stated the borrowers would supply $21,500 cash. Cook was aware that the false loan details were presented to the bank board for approval.
The FBI Springfield Field Office and the Federal Housing Finance Agency Office of Inspector General investigated the case. The prosecution was handled by Special Attorney Hal Goldsmith from the Eastern District of Missouri. The U.S. Attorney’s Office for the Southern District of Illinois was recused from the case.
“The FBI works daily to disrupt fraudulent activity and we recognize the impact it has on banking institutions,” said FBI Springfield Field Office Special Agent in Charge Christopher Johnson. “FBI Springfield will continue to dedicate investigative resources for targeting fraud in its many forms to protect the integrity of the banking process.”
Photo of Steven Cook courtesy of SouthernTrust Bank
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What a joke!! $6,000 fine, 50 hours of community service, & 2 weekends in jail??!! Nothing more than a slap on the wrist! This kind of “punishment” just encourages fraud. This guy knew exactly what he was doing and probably has been doing it for years!
For him The punishment was worth the winnings. He made a big profit out of this scheme