An executive with a Little Rock, Arkansas factoring company, Southwest Financial Inc. pleaded guilty to conspiracy and eight counts of fraud in schemes which cheated investors out of more than $13million.
Mike McNew was charged with conspiracy, four counts of wire fraud, two counts of mail fraud, one count of bank fraud and one count of making false statements. Southwest Financial was using investorsā funds to factor false invoices from Starkey Electric Co. in Tyler, Texas. Several banks were also defrauded in the scheme including First Commericial Bank (now Regions Bank), OneBank in Little Rock, the Bank of Mulberry and Pinnacle Bank.
Source: Arkansas Democrat Gazette