PADUCAH, Ky. (AP) -- A federal prosecutor says a Tennessee man has pleaded guilty to bank fraud, mail fraud and money laundering after admitting to misusing a loan from a bank and the Tennessee Valley Authority.
U.S. Attorney David Huber said in a statement Tuesday that 62-year-old Lloyd Aaron Smith of Dyersburg, Tenn., entered the plea in federal court in Paducah. He is scheduled for sentencing Jan. 14.
Smith and a co-defendant, Neal Gordon Wall, of Newbern, Tenn., obtained $5.5 million in loans from Citizens Bank in Hickman and the Tennessee Valley Authority in the fall of 2003 with a restriction that the money be used for the operation of a textile plant, Hickman Mills. Smith admitted to using the money for unrelated businesses.
Wall has pleaded not guilty. His trial is scheduled to begin on Nov. 3 in Paducah.
(Copyright 2008 by The Associated Press. All Rights Reserved.)