orangeleader.com (Orange, Texas)

March 21, 2013

Hardin County lawyer sentenced to prison for bank fraud

Special to The Leader
The Orange Leader

BEAUMONT — A 40-year-old Silsbee, Texas lawyer has been sentenced to federal prison for bank fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales recently.

Matthew Taylor Morones pleaded guilty on Sept. 6, 2012 to bank fraud and was sentenced to 24 months in federal prison on Tuesday by U.S. District Judge Ron Clark.

According to information presented in court, on Dec. 21, 2005, Morones was appointed as the receiver for the Indian Paintbrush Development (IPD). At that time, the organization had approximately $365,000 in its bank accounts, held at two different financial institutions.

From May to July 2007, Morones used the money from IPD’s account to purchase six certificates of deposit (CDs) from Guaranty Bank totaling $365,000. On July 30, 2007, Morones obtained a $90,000 loan from Guaranty Bank, which was used to purchase a home. Morones used one of the CDs purchased with IPD’s money as collateral to obtain the loan. Morones was indicted by a federal grand jury on Mar. 21, 2012.

Morones has already paid back over $200,000. He was ordered to pay the remaining restitution in the amount of $165,000.

This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.