to Individuals A, B, C and D were reviewed by the Community State

Bank Board of Directors.

10.

EXECUTION OF THE SCHME

On or about the dates set forth below, in Newton County, within

the Northern District of Indiana, WARNE committed the following acts, each

of which constituted an execution and attempted execution of the scheme to

defraud:
Count | Name on Loan Date Loan Obtained | Loan Amount
1 Individual A May 29, 2015 $410,000
2 Individual A May 29, 2015 $610,575
3 Individual A August 20, 2015 $85,000
4 Individual B October 22, 2010 $118,000
5 Individual B May 29, 2015 $535,000
6 Individual B August 18, 2014 $70,000
7 Individual C March 1, 2011 $189,250
8 Individual C May 28, 2015 $260,000
9 Individual C June 1, 2015 $370,000
10 Individual D March 17, 2015 $62,000

All in violation of Title 18, United States Code, Section 1344.



FORFEITURE ALLEGATIONS

1. The allegations contained in Counts 1-10 of this Indictment are
hereby re-alleged and incorporated by reference for the purpose of alleging
forfeitures pursuant to Title 18, United States Code, Section 982(a)(2)(A).

2. Upon conviction of the offenses in violation of Title 18, United
States Code, Section 1344 set forth in Counts 1-10 of this Indictment, the
defendant, MARK WARNE, shall forfeit to the United States of America,
pursuant to Title 18, United States Code, Section 982(a)(2)(A), any property
constituting, or derived from, proceeds obtained, directly or indirectly, asa
result of such violation(s). The property to be forfeited includes, but is not
limited to, the following: the real property, including any improvements
thereto, located at 10761 S. 175 E. Road Brook, Indiana, legally described as
follows: PT S1/2 OF SEC 29 T28W R8W 14.695 ACRES IROQUOIS TWP
CITY/MUNI/TWNSP: IROQUOIS TWP; SEC/TWN/RNG/MER: SEC 29 TWN
28W RNG 08W; TRACT: 1006002032

The United States will also seek a forfeiture money judgment equal to
the value of any property, real or personal, which constitutes or is derived
from proceeds traceable to the offense(s).

3. Tf any of the property described above, as a result of any act or
omission of the defendant(s]:

a. cannot be located upon the exercise of due diligence;

10


THE GRAND JURY FURTHER CHARGES:

COUNT 12
(Identity Theft)

On or about May 29, 2015, in the Northern District of Indiana and

elsewhere, the defendant,
MARK WARNE

did knowingly possess and use, in or affecting interstate commerce, without
lawful authority, a means of identification of another person, namely forged
signatures on documents associated with bank loans, with the intent to
commit an unlawful activity that constitutes a violation of federal criminal
law, namely Bank Fraud in violation of Title 18, United States Code, Section

1344, as set forth in Count 5.

All in violation of Title 18, United States Code, Section 1028(a)(7).


THE GRAND JURY FURTHER CHARGES:

COUNT 11
(Identity Theft)

On or about August 18, 2014, in the Northern District of Indiana and

elsewhere, the defendant,
MARK WARNE

did knowingly possess and use, in or affecting interstate commerce, without
lawful authority, a means of identification of another person, namely forged
signatures on documents associated with bank loans, with the intent to
commit an unlawful activity that constitutes a violation of federal criminal
law, namely Bank Fraud in violation of Title 18, United States Code, Section

1344, as set forth in Count 6.

All in violation of Title 18, United States Code, Section 1028(a)(7).


THE GRAND JURY FURTHER CHARGES:
COUNT 14
(Identity Theft)
On or about March 17, 2015 in the Northern District of Indiana and
elsewhere, the defendant,
MARK WARNE
did knowingly possess and use, in or affecting interstate commerce, without
lawful authority, a means of identification of another person, namely forged
signatures on documents associated with bank loans, with the intent to
commit an unlawful activity that constitutes a violation of federal criminal
law, namely Bank Fraud in violation of Title 18, United States Code, Section

1344, as set forth in Count 10.

All in violation of Title 18, United States Code, Section 1028(a)(7).


-FULED-
UNITED STATE DISTRICT COURT
NORTHERN DISTRICT OF INDIANA FED 18 23°5
HAMMOND DIVISION Meneses

UNITED STATES OF AMERICA)
v. CAUSE NO: 2.16CR 23
MARK WARNE 18 U.S.C. § 1344
INDICTMENT
THE GRAND JURY CHARGES:

COUNTS 1-10
(Bank Fraud)

At all times relevant to this Indictment:

RELEVANT ENTITIES AND INVIDUALS

1. MARK WARNE was a resident of Brook, Indiana, which is in
Newton, County Indiana and falls within the Northern District of Indiana.

2. Community State Bank of Brook Indiana (“Community State
Bank”) was, and is, a financial institution with funds insured by the Federal
Deposit Insurance Corporation (“FDIC”) located in Brook, Indiana.

3. WARNE served as President of Community State Bank from on
or about September of 2010 to September of 2015. WARNE’s employment
with Community State Bank ended after his scheme to defraud the bank was
uncovered.

4, Individual A was a Community State Bank customer and a

member of WARNP’s family.


b. has been transferred or sold to, or deposited with, a third

party;
c. has been placed beyond the jurisdiction of the court;
d. has been substantially diminished in value; or
e. has been commingled with other property which cannot be

divided without difficulty,

the United States of America shall be entitled to forfeiture of substitute

property pursuant to Title 21, United States Code, Section 853(p), as

incorporated by Title 18, United States Code, Section 982(b)(1).

By:

A TRUE BILL:

S/FOREPERSON
FOREPERSON

DAVID CAPP
UNITED STATES ATTORNEY

S/Joshua P. Kolar

Joshua P. Kolar

Abizer Zanzi

Assistant United States Attorney

11


THE GRAND JURY FURTHER CHARGES:

COUNT 13
(Identity Theft)

On or about March 1, 2011, in the Northern District of Indiana and

elsewhere, the defendant,
MARK WARNE

did knowingly possess and use, in or affecting interstate commerce, without
lawful authority, a means of identification of another person, namely forged
signatures on documents associated with bank loans, with the intent to
commit an unlawful activity that constitutes a violation of federal criminal
law, namely Bank Fraud in violation of Title 18, United States Code, Section

1344, as set forth in Count 7.

All in violation of Title 18, United States Code, Section 1028(a)(7).


g. As President of Community State Bank, WARNE was
responsible for preparing the minutes of the Board of Directors
meetings for Community State Bank and making those minutes
available for FDIC examinations.

h. WARNE was aware that any loans to family members
would involve increased scrutiny from the Community State Bank
Board of Directors. WARNE was further aware that any loans to
family members that were not reviewed by the Board of Directors
would raise suspicion among FDIC examiners.

i. To conceal his scheme to defraud and perpetuate his
ability to obtain additional fraudulent loans, WARNE prepared or
caused to be prepared one set of minutes for review by the Community
State Bank Board of Directors. These actual minutes shown to, and
approved by, the Community State Bank Board of Directors, contained
no mention of the fraudulent loans (“actual minutes”). WARNE
prepared a second, false set of minutes for the meetings of the Board of
Directors for Community State Bank (“false minutes”). The false
minutes referenced the fraudulent loans WARNE secured in the names
of Individuals A, B, C and D. WARNE provided and caused to be
provided the false minutes to FDIC examiners, giving the false and

fraudulent representation to FDIC examiners that the fraudulent loans


b. After the fraudulent loans were funded, WARNE used the
proceeds to support his lifestyle, including buying show cattle and
vehicles, making property improvements, and repaying earlier
fraudulent loans.

Cc. From August of 2010 through and including August of
2015, WARNE prepared or caused to be prepared false and fraudulent
universal notes and caused Community State Bank to issue over two
million dollars in fraudulent loans in the name of Individual A.

d. From October of 2010 through and including June of 2015,
WARNE prepared or caused to be prepared false and fraudulent
universal notes and caused Community State Bank to issue over two
million dollars in fraudulent loans in the name of Individual B.

e. From March of 2011 through and including June of 2015,
WARNE prepared or caused to be prepared false and fraudulent
universal notes and caused Community State Bank to issue over one
million five hundred thousand dollars in fraudulent loans in the name
of Individual C.

f. From January of 2015 through and including March of
2015, WARNE prepared or caused to be prepared false and fraudulent
universal notes and caused Community State Bank to issue over sixty

thousand dollars in fraudulent loans in the name of Individual D.


5. Individual B was a Community State Bank customer and a
member of WARNE’s extended family.

6. Individual C was a Community State Bank customer anda
member of WARNE’s extended family.

7. Individual D was a Community State Bank customer.

THE SCHEME TO DEFRAUD

8. Beginning on a date unknown, but no later than August of 2010
and continuing through approximately September of 2015, in the Northern
District of Indiana and elsewhere, WARNE knowingly and with intent to
defraud, executed and attempted to execute a scheme to defraud Community
State Bank and to obtain money, funds, and assets owned by, and in the
custody and control of Community State Bank, by means of materially false
and fraudulent pretenses, representations, and promises, and the
concealment of material facts. Through this scheme to defraud, WARNE
caused Community State Bank to issue over six million dollars in fraudulent
loans.

9. The fraudulent scheme operated in the following manner:

a. WARNE used the identities of Individuals A, B, C, and D
to obtain loans from Community State Bank by preparing loan
applications and universal notes and forging signatures of Individuals

A, B, C, and D.