Two former bank vice-presidents, several Missouri businessmen and a former branch manager of a US Small Business Administration's office face federal charges in connection with frauds involving letters of credit (L/Cs).

Prosecutors say they found at least 31 fraudulent business loans ranging from US$100,000 to US$1.6 million, all of which totalled more than US$10 million.

Fraudulent loans

The two former bankers - Richard DeLong and Melinda Reese - used to be employed by Mid-America Bank and Trust in Pulaski County.

According to the federal indictment, they worked for the bank when it extended several fraudulent loans between January 2005 and January 2007.

Concealed L/Cs

During this time, DeLong allegedly made loans and issued lines of credit to nominee borrowers, including businesses run by other defendants, in order to conceal unbooked L/Cs that he had issued in the name of the bank.

Those loans allegedly benefited of a number of businessmen as well as DeLong's daughter, Andrea Clegg.

A total of 16 people have been charged in connection with the alleged frauds.

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