Show-Me State Times

BENTON, Ill. – The president of a bank in southern Illinois admitted on Thursday to falsifying bank records to facilitate real estate loans.

Steven Cook pleaded guilty in U.S. District Court in Benton to three felony counts of aiding and abetting the making of a false bank entry. Cook was the president of SouthernTrust Bank at the time, which has branches in Marion, Vienna, and Goreville, Illinois. He was also on the bank’s board and a member of its loan committee.

Cook admitted fraudulently facilitating three different sales of real estate to Lawler and Maze Properties LLC in 2022.

In one transaction, Cook approved a loan that funded the sale of seven commercial rental properties in Williamson and Franklin counties from Results Home Buyers 2 to Lawler and Maze, according to the plea agreement. The transaction was a new purchase of real estate, not a refinance, and the buyers were not using any cash to fund the purchase.

During an April 6, 2022 meeting with the seller and buyer, Cook and others agreed to make it appear as if the loan was a refinancing. They backdated documents to falsely indicate that the buyer purchased the properties on Feb. 1, 2022 for an inflated price of $545,152. The documents also falsely indicated that the bank was refinancing 80% of that loan with buyers bringing 20% in cash to the sale. The actual sales price for the properties was $436,122, and no cash was brought by the buyers. The bank’s loan committee approved the loan based on this false information.

Results Home Buyers 2 is partially owned by former Williamson County State’s Attorney Brandon Zanotti who received two years probation, a $5,000 fine, and 20 hours of community service for his role in this scheme.

In August 2022, Cook facilitated another real estate transaction with Lawler and Maze involving four properties. Cook and others agreed that contract would list a false sales price of $413,000 instead of $330,400 while falsely stating that buyers would supply $82,600 in cash.

Finally, during November 2022 Cook facilitated another loan for Lawler and Maze's property purchase in Marion where documents falsely stated borrowers would supply $21,500 cash which he knew were presented with false details for approval by the bank board.

“The lack of professional responsibility demonstrated by Steven Cook diminishes faith consumers place in banking,” said FBI Springfield Field Office Acting Special Agent Shannon Fontenot. “Financial fraud is serious crime with serious consequences.”

“The Federal Housing Finance Agency Office is committed to investigating mortgage-related fraud,” said Korey Brinkman from FHFA OIG’s Midwest Regional Office adding they are proud to have partnered with FBI colleagues on this case.

Cook’s sentencing hearing is set for September 19 where his ultimate sentence will be determined based on advisory guidelines and statutory factors.

Lawler and Maze owned by Justin Maze & David Lawler entered into pretrial diversion acknowledging involvement aiding Zanotti & Cook. As condition Justin resigned as Williamson County Circuit Clerk agreeing not seeking re-election while David's conduct reported Illinois Attorney Registration & Disciplinary Commission.

The FBI Springfield Office along with Federal Housing Finance Agency Office Inspector General investigated while prosecution handled by Special Attorney Hal Goldsmith from Eastern District Missouri after U.S Attorney Southern District Illinois recused from case.