Oak Brook man pleads guilty in loan scheme

An 82-year-old Oak Brook man pleaded guilty to falsifying personal loan information that led to the bank where he formerly served as chairman losing $681,617.

Federal prosecutors said James A. Regas admitted his guilt during an arraignment hearing today. He was charged June 19 and is slated for sentencing Oct. 25. He is facing five years in prison and a maximum fine of $250,000. He has agreed to pay full restitution as part of the guilty plea.

Regas was accused of concealing information about loans he benefitted from that were issued by Western Springs National Bank & Trust, which was closed by federal regulators in April 2011 and subsequently purchased by Heartland Bank and Trust Co.

The loans were issued to friends and family of Regas, who then received some of the proceeds from more than $2 million loaned out. This allowed Regas to use bank funds for his own benefit without having to apply for the loans himself and avoiding federal restrictions against insider borrowing.