Man involved in loan scam gets probation

A Brownsville man who fraudulently obtained loans was sentenced to three years of probation Tuesday in U.S. District Court in Jackson.

William Paul Maddox also was fined $1,000 and ordered to pay a $100 special assessment. He pleaded guilty in 2007.

An additional charge of bank fraud and a second charge of filing fraudulent loan and credit applications were dismissed.

Maddox was one of eight persons indicted in a scheme to fraudulently obtain loans for alleged real estate purchases and the construction of 15 Krystal restaurants in West Tennessee in 1999. They reportedly obtained loans from a number of banks in the region, including the Bank of Alamo. The Alamo bank exceeded its legal lending limit and that contributed to the bank's failure in 2002.

Three of those indicted with Maddox have already been sentenced; three more are scheduled for sentencing in the coming months; and the last one has been declared incompetent to stand trial.