KANSAS CITY — A Greeley businessman has pleaded guilty in federal court to bank fraud. Joseph C. Donohue has also agreed to forfeit more than $9 million. In his plea, he admitted he provided false information to Lyons State Bank to obtain loans to buy and feed cattle. In November 2007, he signed a promissory note to the bank for more than $7.6 million, securing the debt by granting the bank an interest in all livestock he owned.
In later reports to the bank, Donohue overinflated the number of cattle he owned and their value. He also admitted giving false information and got of more than $4 million in loans from Farmers State Bank of Garnett, and Farmers and Merchants State Bank of West Pointe, Neb. Sentencing is June 14. He could get up to 30 years in prison and a fine of up to $1 million.
