The SBA and Alabama One Credit Union were among the victims of check kiting and other fraudulent activities allegedly committed by Danny Ray Butler, a businessman and real estate developer.
According to a statement from U.S. Attorney Joyce White and FBI Special Agent in Charge Richard D. Schwein Jr., in Birmingham, Ala., Butler was recently charged with making false statements connected to schemes to defraud financial institutions and the SBA, among other charges.
In the 51-count indictment, Butler allegedly engaged in a check-kiting scheme that led to a $1.275 million loss at the $620 million Alabama One CU in Tuscaloosa, Ala., after defrauding the SBA of $1.76 million through a loan to build a grocery store.
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