Aaron McCreight, 46, of Dothan, Alabama, has been charged with one count of bank fraud. Doug Hargrave, 54, of Puyallup, Wash., Has also been charged with one count of bank fraud. The charges are contained in two accusations filed today in United States District Court in Cedar Rapids, Iowa.
The reports allege that McCreight, then President and CEO of Go Cedar Rapids (“GoCR”), and Hargrave, then Chief Financial Officer of GoCR, executed a scheme to defraud a Cedar Rapids bank in connection with loans to GoCR that were used to fund Newbo Evolve, a three-day music and cultural event hosted by GoCR in August 2018 that included concerts by the band Maroon 5 and singer Kelly Clarkson.
The Information also allege that McCreight and Hargrave defrauded the Cedar Rapids bank by making false statements about Newbo Evolve ticket sales, projected income, projected expenses and the actual amount of loss that McCreight and Hargrave expected. that Newbo Evolve generates. Based on these false claims, McCreight and Hargrave fraudulently tricked the Cedar Rapids bank into loaning GoCR hundreds of thousands of dollars to be used to fund Newbo Evolve.
If found guilty, McCreight and Hargrave each face a possible maximum sentence of 30 years in prison, a fine and a period of supervised release after any imprisonment.
The court will set the first appearance dates for the indictments of McCreight and Hargrave.
As in any criminal case, a charge is only an accusation and an accused is presumed innocent until proven guilty.
The case is being pursued by US Attorney Sean R. Berry and Assistant US Attorney Kyndra Lundquist and has been investigated by the Federal Bureau of Investigation.
Information on the court file at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
McCreight’s case number is 22-CR-00002. The Hargrave case file number is 22-CR-00001.
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