A 40-year-old Silsbee lawyer has been sentenced to federal prison for bank fraud in the Eastern District of Texas. 

According to a press release from the U.S. Attorney for the Eastern District of Texas, Matthew Taylor Morones pleaded guilty on Sep. 6, 2012, to bank fraud and was sentenced to 24 months in federal prison by U.S. District Judge Ron Clark.

On Dec. 21, 2005, Morones was appointed as the receiver for the Indian Paintbrush Development (IPD).  At that time, the organization had approximately $365,000 in its bank accounts, held at two different financial institutions.

According to court information, from May to July 2007, Morones used the money from IPD’s account to purchase six certificates of deposit (CDs) from Guaranty Bank totaling $365,000.

On July 30, 2007, Morones obtained a $90,000 loan from Guaranty Bank, which was used to purchase a home.  Morones used one of the CDs purchased with IPD’s money as collateral to obtain the loan.

Morones was indicted by a federal grand jury on March 21, 2012.

Morones has already paid back over $200,000.  He was ordered today to pay the remaining restitution in the amount of $165,000.

This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.

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