DANVILLE, Ky. (FOX 56) – A Danville man pled guilty Monday to the unlawful conversion of loan collateral.
A news release said that 33-year-old Pete Alex Cox used his beef and dairy cattle to obtain a line of credit starting in 2013. The Department of Justice said between 2013 and 2018, Cox applied to increase his line of credit, until it reached $1,057,140.35 in 2018, using 800 cattle he owned as collateral.
LATEST KENTUCKY NEWS:
The department said Cox admitted in his plea agreement that between May and October 2019 he sold his cattle to unapproved sellers, using a fake farm name, and did not apply the proceeds to his debt.
“He further admitted that his intention in using the fictitious farm name was to prevent Ag Credit from receiving any of sales or profits of the sales,” reads a news release.
The news release said his sales totaled more than $1.1 million.
Cox is scheduled to be sentenced on July 14 and faces a maximum of five years in prison and a fine of $250,000.