The former president of the First National Bank of Northern Kentucky was indicted in connection with a multi-million dollar loss

The former president of the First National Bank of Northern Kentucky was indicted Thursday in connection with a multi-million dollar loss at the bank. A federal grand jury in Covington indicted Richard Thomas, 51, of Fort Mitchell, Ky., on charges of conspiracy to commit bank fraud and aiding and abetting the submission of false loan applications. The indictment against him alleged that he conspired with John Van Winkle and members of Van Winkle’s family to defraud the bank.

The Van Winkle family members obtained multiple loans and loan renewals from the bank by falsely saying they were for business purposes, prosecutors said. But after getting the loans, John and Linda Van Winkle, who lived in Walton, Ky., at the time, actually used the funds for personal expenses.

The indictment also alleges that Thomas helped Sharlott Thompson and Toni James - Linda Van Winkle’s daughters from a previous marriage - and James’ boyfriend, John Edwards, get loans for business purposes that actually went into John and Linda Van Winkle’s personal accounts. In April, the five were indicted on one count of conspiracy to commit bank fraud, bank fraud and 11 counts of making false loan applications.

The agency found an unacceptable number of loans in default and ordered the bank to remove Thomas. Thomas, the founder of the bank, agreed to retire as president and CEO in September of that year. The bank wrote off $10.7 million worth of bad loans that year, and in 2003 was sued by shareholders seeking $14 million.

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