Former president of GO Cedar Rapids pleads guilty to bank fraud to fund newbo evolve festival
CEDAR RAPIDS — The fired leader of a now-defunct Cedar Rapids tourism agency became the organization’s second convicted executive this week when he admitted Thursday to bank fraud — lying that the 2018 “newbo evolve” music and cultural festival was on track to turn a profit when it actually lost millions.
Former GO Cedar Rapids president and chief executive officer Aaron M. McCreight, 47 — now tourism director for Dothan, Ala. — pleaded guilty in U.S. District Court to one count of felony bank fraud. He waived his right to have a grand jury indictment.
McCreight admitted to participating along with one of the employees he oversaw, Douglas S. Hargrave, 55, former finance director of GO Cedar Rapids, to defrauding Bankers Trust. McCreight admitted that the tourism agency didn’t have enough money to pay for alcohol to be sold at the three-day event or to pay one of the headline acts, singer Kelly Clarkson.
McCreight admitted that he made false misrepresentations to the bank regarding a budget in support of increasing its loan. The faked budget overstated evolve’s expected revenues, expenses and expected profit to be $65,654, according to court documents.
Read more: https://www.thegazette.com/crime-courts/former-president-of-go-cedar-rapids-pleads-guilty-to-bank-fraud/
(Cedar Rapids Gazette)
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