Former Columbia loan officer sentenced to 15 months of prison time for fraud scheme

Wednesday, July 9, 2008 | 1:44 p.m. CDT; updated 3:56 p.m. CDT, Tuesday, July 22, 2008

COLUMBIA — A former Columbia loan officer was sentenced to 15 months in federal prison without parole and ordered to pay restitution of $748,866 Tuesday for his part in a bank fraud scheme, according to a news release from the U.S. Attorney’s Office of the Western District of Missouri. The government estimates the scheme cost Boone National Savings and Loan Association more than $740,000, the release said.

Brian Russell Nutter, 35, pleaded guilty to bank fraud in February for creating loans for fictional bank customers and forging signatures at the bank, where he was a loan officer. Nutter had also previously worked at Boone County National Bank, the release said.

Nutter used fraudulent loans, fictitious characters and forged signatures to commit bank fraud against Boone National Savings and Loan Association regarding his clients John T. Sobaski and Matthew Morgan, the release said.

While working at Boone County National Bank as a loan officer, Nutter created fraudulent loans using fictitious names to prevent then-customer and co-defendant Sobaski, 44, from going into default. Nutter moved Sobaski’s loans with him when he left Boone County National Bank to work with Boone National Savings and Loan Association as a loan officer and vice president in 2002. According to the release, Nutter and Sobaski continued to create fraudulent loans using Sobaski’s business address as well as various other fictitious individuals and businesses.

Nutter also used forged signatures and altered financial statements for Morgan, another client at Boone National Savings and Loan, the release said.

After pleading guilty to bank fraud in January 2008, Sobaski was sentenced to two years and six months in federal prison without parole and ordered to pay $326,318 in restitution, according to the release. Sobaski is the former owner of Big Cedar Custom Design and Fabrication.

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