Former Harrisonburg, Virginia Businessman Indicted on 24 Charges

A Harrisonburg man is facing 24 fraud-related charges following an indictment by a Federal Grand Jury.




Russell Kinnard Henry, Jr., 59, was charged with eight counts of bank fraud, eight counts of theft, the embezzlement or misapplication by a bank officer and eight counts of making a false statement for the purpose of influencing a financial institution.



Henry is the former City/Community Executive and Senior Vice President of FNB Southeast.



According to the indictment, between May 2003 and June 2005, Henry misrepresented himself to be his Alzheimer’s Disease stricken mother, Mary Henry, in loan documentation in order to secure lines of credit in his mother’s name.



The applications for credit were made to the defendant’s employer, FNB Southeast.



The defendant did not disclose the nature of his relationship on the loan applications to FNB Southeast.



In numerous fraudulent applications allegedly filed by Henry, the defendant falsely stated that his mother was the one making the application and misrepresented her annual income.



He also may have acted as the loan officer for each application and approved every loan himself.



Henry was fraudulently issued $1,910,101 in loans in his mother’s name.



The indictment alleges that Henry then withdrew money from the loan accounts in order to pay his mortgage and real estate taxes.



He also allegedly used the money to purchase a Dodge Durango, Coca Cola memorabilia and Petro signs.



Some of the alleged withdraws came following the May 25, 2005 death of his mother, and loan recipient, Mary Henry.



If convicted, the maximum penalty faced by the defendant at sentencing is 30 years incarceration and/or a fine of up to $1 million on each of the 24 counts.



The FBI conducted the investigation.