Contractor hired for CPS remodel project accused of bank fraud
A Jefferson City contractor hired by Columbia Public Schools for a remodeling project was arraigned in federal court Wednesday.
A federal grand jury indicted Anthony Adrian, owner and president of Jeff City Industries, last week on two counts of bank fraud.
The indictment said that in 2014, Adrian took approximately $691,341.67 dedicated to remodel a middle school’s kitchen to pay off other subcontractors he used on different projects.
According to court documents, Jeff City Industries entered into a contract with Columbia Public Schools on July 1, 2014. The company was contracted to build a kitchen addition to Lange Middle School.
In August of that year, Adrian allegedly signed a commercial loan agreement with Hawthorn
Bank for $1,369,000 to finance the project. Adrian is accused of submitting fraudulent reports to justify his request for loan proceeds.
The indictment alleged the reports Adrian submitted inaccurately stated the project at Lange Middle School was on or near budget and did not mention that a portion of the loan proceeds was used to pay subcontractors for unrelated construction projects.
The court documents said by November 2014 Adrian ran out of money to finish the kitchen remodel. Adrian is accused of defrauding Hawthorn bank approximately $691,341.67.
