LEXINGTON, Ky.— Vonnie McDaniels, 32, of Lexington, Kentucky, was sentenced to 27 months in federal prison on Monday by Chief U.S. District Judge Danny C. Reeves, after being convicted of bank fraud and aggravated identity theft.

McDaniels obtained a $382,500 commercial loan from Kentucky Bank in August 2019 under false pretenses, and used the loan proceeds to purchase an office building in Frankfort, Kentucky that was being leased by the Commonwealth of Kentucky.  According to the evidence at trial, during the loan application process, McDaniels gave the bank falsified financial records and other information, which misrepresented his assets and liabilities, and modified key terms of the lease agreement with the state.  The state terminated the lease in December 2019.  In March 2020, McDaniels requested loan forbearance from Kentucky Bank, falsely claiming that the reason he was unable to repay the loan was that the state of Kentucky had suspended rent payments under the lease due to the COVID-19 pandemic.  To corroborate this lie about the pandemic, McDaniels fabricated a letter from a state employee purporting to suspend lease payments at the office building, and used the name and signature of that employee.

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