Lubbock Banker Faces Time in Jail for Fraud - KCBD NewsChannel 11 Lubbock

7/7/06

Lubbock Banker Faces Time in Jail for Fraud

Source: Lubbock Co. Sheriff Source: Lubbock Co. Sheriff

Late Thursday afternoon, bank fraud charges and a guilty plea were filed at the Lubbock Federal Courthouse.  Carruth, a former Texas Tech University Masked Rider, may be facing jail time for defrauding a bank for his own personal gain.

NewsChannel 11 has relied solely on court documents and reports from others to get information. No one wants to talk about the Johnny Bob Carruth conspiracy. The 58-year-old, admitted to a federal judge he is guilty of lying on loan documents to receive money for personal gain.

According to the documents, he wanted a loan for $200,000 to buy 200,000 shares in an Internet company. But on the loan papers, he told a different story.  Bank employees of that same bank where he was a director, helped him lie.

The documents state they told Carruth to put it down as a loan for business expenses rather than personal; it was a better way to get approved.

So far, and according to his plea agreement, Carruth has paid $142,000 in restitution to My Lubbock Bank, formally First National Bank.  Prosecutors are recommending to the judge to sentence him to 14 months behind bars.  Carruth has not been sentenced.

Carruth, as some of you may remember, was Texas Tech's masked rider in 1969. He also found himself in trouble with police in Juarez, Mexico.  Eight years ago, he carried a .22 caliber rifle across the border and was placed in a Mexican Federal prison for 42 days.  

Former Vice President Charlie Cleveland had to pay a $50,000 fine for making loans to family members for his personal gain.  Former Vice President Kathy Hughes was fined $25,000 for unsafe loan practices.  Bank Director and businessman Kim Morris was fined $18,000.  He was accused of failing to ensure proper bank procedures.

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