Tim Vaughn, the former mayor of White Oak and Gregg County GOP Chairman has pled guilty to defrauding banks.
According to court documents Vaughn agreed to pay $146,000.00. The amount he was able to obtain from the banks by lying to them.
10 days before Vaughn was scheduled to begin his initial trial, he entered the plea agreement on Friday, May 3rd.
Back in March, Vaughn was charged in federal court on two counts of making a false statement to a bank and two counts of aggravated identity theft. A federal grand jury returned the indictment on Feb. 20.
If convicted, Vaughn faces up to thirty years in prison for making the false statements and a fine up to $1 million. For the identity theft, he is facing up to two years behind bars and a fine up to $250,000.
According to the indictment, Vaughn is accused of making false statements to Southside Bank (then First Bank & Trust East Texas) on March 18, 2016, and then to Texas Bank and Trust on March 29, 2016.
At both locations, he also used ID for another person with the initials D.V. while making these statements.
According to prosecutors, Vaughn presented that the borrower of a line of credit at First Bank and Trust East Texas authorized the application, but Vaughn knew that the borrower’s signature was forged on the promissory note.
At Texas Bank and Trust, Vaughn allegedly made a false statement to influence the bank’s actions on a commercial loan, as he represented that the co-owner of pledged collateral had executed a notarized deed of trust for the real property. He knew, however, that the co-owners signature was forged.
Vaughn was the mayor of White Oak from 1996-2008. He was also the Gregg County Republican Party Chairman until December 2016. He resigned just five months into his second term to pursue career plans in Central Texas.
He also was chairman of the Longview Regional Medical Center board of trustees as recently as 2015, served on the Northeast Texas Regional Mobility Authority board of directors.
According to NETRMA, Vaughn served 18 years on the Longview Metropolitan Planning Organization executive board, was appointed to the 12-member State Rail Planning Task Force for the Texas Department of Transportation, chaired the board for Gregg and Harrison County Children’s Advocacy Center and served on the Texas Association of Business Board of Directors as well as its Transportation Committee.
Vaughn has been a defendant on numerous lawsuits in recent years, according to Gregg County judicial records.
In September 2016, Longview cardiologist Dr. Samir Germanwala sued Vaughn for damages after the two men had formed a partnership to build high-end homes. In the lawsuit, Germanwala accused of transfers that Vaughn made from the business account to companies within his homebuilding enterprise.
The case was dismissed in 2017