Pennock sentenced on fraud charges, gives false data to obtain credit
Douglas Pennock was sentenced to fourteen months of imprisonment and five years of supervised release, in connection with charges that he overstated the accounts receivable of his business, JDL Longhorn, on a large line of credit he obtained in June 2008.
Pennock, owned, operated, and was affiliated with a number of businesses, including a business known as JDL Longhorn, Inc. with principal offices in Pittsfield, IL. JDL Longhorn provided services relating to the construction of animal confinement systems.
According to court documents, in May and June 2008, JDL Longhorn arranged for a line of credit with Peoples Bank, Troy, MO. Most of the funds from that line of credit were used to pay down earlier loans to other banks. As part of obtaining credit, Pennock provided false information regarding the status of the accounts receivable for JDL Longhorn. Ultimately, JDL Longhorn failed and defaulted on the loan, resulting in a substantial loss to Peoples Bank.
Pennock, 45, of Pittsfield, IL, pled guilty to one count of bank fraud last August and appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by FDIC Office of Inspector General, Federal Bureau of Investigation, and Board of Governors of the Federal Reserve System Office of Inspector General. Assistant United States Attorney John Bodenhausen handled the case for the U.S. Attorney’s Office.