A Kankakee area developer with ties to the failed Country Bank, has pleaded guilty to defrauding a federal business loan program of $1.7 million. 54 year old Gregory Yates and his son, 32 year old Terrance Yates both pled guilty earlier this month at U.S. District Court in Urbana to one count of conspiracy to commit bank fraud. The younger Yates also pled guilty to one count of money laundering. The two will be sentenced May 16th. The case involved a development deal in Casey, Illinois. Although the loan was processed through Country Bank , the loan guarantee was funded by the USDA using money allocated through the American Recovery and Reinvestment Act.
In a separate matter, Yates defaulted on a $4.5 million note to Country Bank for the Fyre Lake golf course development in June of 2011 just months before Country Bank was shut down.