U.S. Attorney Chris Thyer's
office announced a federal jury's conviction of John B. Stacks,
owner of Mountain Pure Water, on three counts of wire fraud, a count of submitting a false claim for federal disaster aid and three counts of false statements. It failed to reach a verdict on three other money laundering counts in a trial before federal Judge Leon Holmes.
Stacks was convicted of a scheme to make a false claim for disaster relief assistance from the Small Business administration.
Said the U.S. attorney:
According to evidence presented at trial, in 2009, Stacks obtained an SBA loan for $703,300 under false pretenses. Stacks claimed he had over $500,000 worth of Mountain Pure Water equipment at his farm in Damascus, Arkansas, that was destroyed when a tornado touched down in the area in May 2008. The wire fraud and money laundering charges stem from three transfers of money from the SBA in Kansas City, Missouri to Stacks’ General Account at Home Bank of Arkansas in Greenbrier. The false claim and statement charges are related to the Loan Authorization and Agreement and other related documents and statements Stacks submitted to the SBA to induce the SBA to make the loan.
Sentencing will be scheduled by the Court at a later date.
Stacks' attorney has asked the judge to consider setting aside the jury verdicts.