Brandon Woodrome, a northwest Arkansas real estate developer, has pleaded guilty to one count each of bank fraud and wire fraud, according to Kenneth Elser, the U.S. Attorney for the Western District of Arkansas.
The move comes after a two-count federal information was filed against Woodrome, 28, charging him for his role in a scheme to defraud First Western Bank in Fort Smith and Rioux Capital of Austin, Texas.
A sentencing date has not been set.
Arkansas Business wrote about Rioux Capital's accusations against Woodrome in May. Rioux made the charges in connection to Woodrome's personal Chapter 7 bankruptcy case.
According to the U.S. Attorney's office, Woodrome owned and operated a construction business in Fort Smith called Behr LLC. In 2014, he obtained a $795,000 construction loan at First Western Bank to fund the purchase of land and build a medical clinic and strip center in Fort Smith. The loan agreement required him to submit invoices for work the subcontractors had completed.
Prosecutors say Woodrome "created and submitted fraudulent invoices that contained material misrepresentations about construction work he knew had not been done by subcontractors to First Western Bank for payment." The bank issued cashier's checks based on the invoices; Woodrome received more than $300,000 from First Western between November and December 2014 for the fraudulent invoices he had submitted, the U.S. Attorney's office said.
Prosecutors say Woodrome also defrauded Rioux Capital of about $1.8 million by submitting fraudulent invoices by email.
Judge P.K. Holmes III accepted the guilty plea Thursday in the U.S. District Court in Fort Smith.