One of the defendants in a million-dollar banking scheme to defraud the federal government has been fined $500 for her role in the matter.

U.S. District Judge Stephanie Rose on Tuesday sentenced Susan McLaughlin of the now-shuttered Valley Bank in Moline, Illinois, to time served on a felony conviction of conspiracy to commit mail fraud and imposed a $500 fine and $100 special assessment.

McLaughlin was one of several individuals indicted for a scheme through which Valley Bank attempted to defraud the Small Business Administration of millions of dollars.

Larry Charles Henson of Davenport, the former president and chairman of the bank, allegedly led the effort to shift millions in potential losses from the bank to the SBA, according to court records. Prosecutors alleged that Henson and others – including Michael Barry Slater of Des Moines, who was the founder and president of Vital Financial Services in Clive — engineered those loans so that it appeared the borrowers qualified for SBA guarantees.

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Former bank executive fined $500 for her role in scheme to defraud SBA