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Ill. father, son guilty of business loan fraud

Published: Tuesday, Feb. 11, 2014 1:04 p.m. CDT

URBANA — A father and son from northeast Illinois will be sentenced May 16 after pleading guilty to defrauding a federal business loan program of $1.7 million.

The U.S. Department of Justice says 54-year-old Gregory Yates of Bourbonnais and his 32-year-old son, Terrance Yates, pleaded guilty Monday in federal court to conspiracy to commit bank fraud. The younger Yates also pleaded guilty to money laundering.

According to the Justice Department the two owned several companies. One company borrowed $5.95 million to buy a bankrupt business from another family member.

The Yateses planned to use $1.7 million for construction work on the new business. But they hired their own company to do the work and seriously inflated the costs.

The father faces up to 30 years in prison and the son 40.

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