United States Attorney Richard B. Roper
Northern District of Texas

RANCHER ADMITS DEFRAUDING BANK OF APPROXIMATELY $129,000

LUBBOCK, Tx. — A San Angelo, Texas, rancher, Andy Luna, pled guilty today in federal court today to an indictment charging one count of bank fraud, announced U.S. Attorney Richard B. Roper of the Northern District of Texas. Luna, 38, entered his plea before U.S. District Judge Sam R. Cummings who ordered a pre-sentence investigation with sentencing to be scheduled after that investigation is completed. Luna faces a maximum statutory sentence of 30 years in prison and a $1 million fine. As part of his plea agreement, Luna has agreed to pay $129,044.07 in restitution.

According to documents filed in Court, between approximately May 2004 and February 2006, Andy Luna defrauded the San Angelo Banking Center by inducing the financial institution, by false and fraudulent representations and promises, to loan him approximately $129,044.07, to purchase livestock, based on his representations and promises to the bank that the livestock he purchased with the proceeds of those loans, as well as his existing livestock inventory, would secure repayment of the loans. Luna admitted that he knew that those representations and promises were not true.

Luna admitted he acquired the livestock with the loan proceeds but instead of repaying the loans to the bank, he sold the livestock and did not apply the proceeds toward the debt repayment. From May 2004 through February 2006, Luna’s buying and selling of cattle reflected a pattern of acquiring livestock following each loan draw, then selling off the cattle to generate cash for living expenses.

After the San Angelo Banking Center raised concerns about the collateral, the defendant made additional false representations and promises, such as: representing that he had not sold any cattle pledged to the bank but had only sold cattle he owned prior to the loans; providing a false inventory as to what cattle he had in his possession; and, representing that he had sold the pledged cattle, used the money to purchase calves that had been placed in a feedlot where he was victimized when someone else sold the calves and absconded with the sales proceeds.

Luna admits that he fraudulently obtained loans from the San Angelo Banking Center in the amount of approximately $129,044.07 and that he owes restitution in that amount.

U.S. Attorney Roper praised the investigative efforts of the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Roger McRoberts of the Lubbock, Texas, U.S. Attorney’s Office.

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