A former Washington banker and developer pleaded guilty Friday to defrauding various area real estate companies of more than $174,000 over the last several years.
David Thornburg, 46, waived indictment by a grand jury and entered a plea of guilty to one count of wire fraud at the Federal Courthouse in Peoria.
Thornburg admitted in court that from fall 2006 through February 2008, he embezzled funds for his personal use from various real estate development companies in the Washington area.
Those companies include Gallery Land Group, Titanium Development Group, Titanium Investment Properties, Panther Creek Development Group, Gallery Homes of Washington and
Mallard Crossing.
Thornburg had an ownership interest and a management position within all of the companies and had access to the financial accounts and assets.
Thornburg’s voice cracked and trembled in open court as he was asked by Judge Joe Billy McDade to describe his defrauding scheme.
“I was a partner in several companies and endorsed company checks or debited money and put it into my personal account. I also intercepted third party checks and endorsed and deposited them,” Thornburg said.
Assistant U.S. Attorney Greggory Walters said some of those third party checks included rent and rent-to-own payments from tenants at Gallery Homes and Mallard Crossing, which Thornburg then deposited into his personal account at Heartland Bank on 11 different occasions.
Judge McDade said he remembered Thornburg from his position at Heartland Bank, where he worked for 13 years.
“I had a mortgage loan several years ago there, and he was the gentleman who attended to me,” McDade said.
However, both the prosecution and defense agreed that it was not a conflict of interest.
Thornburg had never been formally arrested or processed by police during the 18-month investigation by the Washington Police Department and U.S. Secret Service.
Washington Police Chief Jim Kuchenbecker took Thornburg into custody immediately following the Friday court appearance.
Kuchenbecker said Thornburg was formally booked, photographed, fingerprinted and then released on his own recognizance.
“It was more of a formality because he had never been arrested. He was then given the terms of his release and able to leave the courthouse and go and do his own thing,” Kuchenbecker said.
Some of the terms of Thornburg’s release include reporting to the probation office, surrendering his passport and any firearms and advising his employer of his charges.
Kuchenbecker said that he is pleased to have closure on an investigation his department and the U.S. Secret Service have been working on since March 2008.
