BILLINGS- A former market president for Rocky Mountain Bank has admitted to fraud and money laundering crimes.
A release from the Department of Justice says 46-year-old Stephen Phillip Casher was charged in a 14-count superseding indictment alleging bank fraud and related crimes.
The prosecution presented evidence in court records at trial that Casher worked as a market president for Rocky Mountain Bank from about November 2011 until January 2017.
Casher was one of the people responsible for approving bank loans to Larry Price, Jr. or one of Prince’s related companies.
The release says Casher and several private investors also made large, private, high-interest loans to Price.
Neither Casher nor Price disclosed the private loans to Rocky Mountain Bank and Casher never informed Rocky Mountain Bank that he had a conflict of interest that might impair his impartiality in reviewing loans involving Price.
Rocky Mountain Bank loaned $3.75 million to H&P Investments in September of 2014.
Price controlled H&P investments and acted as an unlimited guarantor of the loan, Casher being one of the bank officials who approved the loan and was responsible for collecting Price’s personal financial statement and providing it to the bank.
The release says a few days before the bank loan, Casher and a private investor privately loaned Price $900,000.
The private loan was specifically concealed and omitted from the personal financial statement that Casher arranged for Price to sign the same day the private loan was executed, which resulted in a false entry in Rocky Mountain Bank’s books.
In June 2015, Rocky Mountain Bank loaned about $1.18 million to Seven Lands Holdings, which Price controlled and acted as a personal guarantor of the loan.
Price used the loan to buy five houses and turn them into rental properties.
In early 2015, several private investors associated with Casher loaned Price $1.5 million. Casher brokered the deal and eventually received $20,000 as a “thank you” from the private investors.
One of the homes Seven Lands Holdings was buying belonged to Casher and, as a result, he was removed from Rocky Mountain Bank’s chain of approval.
Even though he was removed from the chain of approval, Casher still provided lender information on the loan and was involved in preparing loan documents.
Neither Casher nor Price informed Rocky Mountain Bank about the $1.5 million private loan before the bank loaned Seven Lands Holdings $1.18 million.
Rocky Mountain Bank’s entry misrepresented Price's net worth and liquidity.
Casher personally profited from this Rocky Mountain Bank loan because he received a large portion of loan funds from the sale of his house.
Stephen Phillip Casher faces a maximum of 30 years in prison, a $1 million fine and five years of supervised release.