Bank worker writes $1 million in bogus loans, lives in luxury

An Elkhart County woman lived a life of luxury by writing bogus bank loans. Today she learned how much time she’ll have to spend in prison.

43 year old Connie Horvath had about 14 years of banking experience under her belt when she committed her crimes as a business lender at MutualBank’s Goshen office.

She was earning a legitimate living with a salary of $80,000 per year, when she carried out a plan to steal $84,000 a month by writing fraudulent loans.

In June of 2011, she issued a $200,000 loan to Oray, LLC—a corporation she created using her father as the registered agent. Loan documents made it seem as if the proceeds would be used for farming purposes, but Horvath actually used the cash to refinance the debt she had on a timeshare villa in Mexico.

Later, it was more of the same: Horvath purchased a four bedroom, three and a half bath home on Indiana Lake in Union, Michigan by writing a bogus loan for $590,000.

In U.S. District Court in South Bend today it was argued that Horvath made a total of six illegal loans worth about $1 million and that she spent $800,000 of that on luxury items including a new BMW.

Horvath offered a tearful apology and asked the judge to punish her while minimizing the effects on two young children she adopted from Ethiopia.
The prosecution countered that the kids were already in Horvath’s care when she committed her crimes and that she was now trying to use the children as a “get out of jail free” card.

The judge handed Horvath a prison sentence of 33 months (two years and nine months) that will be followed by two years of supervised release.

Court documents indicate that Horvath’s criminal behavior began in June of 2010 and was discovered in June of 2011.

Horvath will not begin serving her time behind bars until January 3rd when she was ordered to surrender voluntarily.

Horvath has been cooperative and has agreed to pay $249,000 in outstanding restitution.


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