CEDAR RAPIDS, Iowa (AP) — Two executives of a Cedar Rapids tourism agency admitted they defrauded a bank to acquire loans for a three-day music and cultural event in August 2018.
Aaron McCreight, of Dothan, Alabama, former president and CEO of GO Cedar Rapids, pleaded guilty Thursday to bank fraud.
Douglas Hargrave, of Puyallup, Washington, former finance director of the now-defunct organization, pleaded guilty on Wednesday to bank fraud.
The men admitted that they defrauded Bankers Trust in order to obtain loans for “Newbo Evolve,” which promised concerts from Kelly Clarkson and Maroon 5.
Federal prosecutors said the men misrepresented ticket sales, projected revenues and expenses and the expected total loss for the event.