Former Kentucky banker sentenced in scams
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A former Kentucky banker has been sentenced to three years in prison after taking part in schemes involving charitable donations.
The sentence for Mark F. Smith, of Shelbyville, includes $610,127 in restitution.
Of that, $560,000 is due to a woman who gave donations to the Shelby County Humane Society based on fake documents Smith gave her, according to a court document.
The woman, identified in the case by the initials M.G.M., was on the board of the non-profit and Smith was president.
The woman had pledged to match donations to the humane society. Smith used fake documents showing large donations to induce M.G.M. to give, according to a court document.
Smith also sold land belonging to the humane society that the woman had donated money to buy. She gave more money to get back the land, according to a court document.
In a case not related to the humane society, Smith set up an account to take donations for nursing scholarships, but took more than $8,000 that was donated.
Smith was a business development officer and loan officer at Citizens Union Bank before resigning in 2018. He pleaded guilty to bank fraud and wire fraud.
In letters to U.S. District Judge Gregory F. Van Tatenhove, supporters described Smith as a dedicated family man and faithful member of his church who had worked to help his community.
But the prosecutor, Assistant U.S. Attorney Kathryn M. Anderson, said Smith used his position at the bank to promote himself at the humane society, to cover up his mismanagement of its money and to keep up his lifestyle.
Smith “seems to excuse himself” by saying his crimes were for the benefit of the humane society, but he enjoyed benefits as a result of his position with the non-profit, the prosecutor wrote.
He used the organization’s money for $17,500 worth of Kentucky Derby tickets and took unexplained reimbursements totaling more than $60,000 from 2015 through 2018, Anderson said.
And the nursing scholarship scheme “is nothing more than outright theft,” Anderson said.
Van Tatenhove sentenced Smith on Nov. 17 in Frankfort. He ordered Smith to report to prison on Feb. 15.
