TYLER, Texas (KLTV) - An East Texas businessman admitted to using loan documents with forged signatures in order to get personal and commercial loans for a total of $145,000 from two banks and signed a sealed federal plea agreement that was filed on May 2.
Timothy Lynn Vaughn, who is a former Gregg County GOP chair, served as the mayor of White Oak from 1996 to 2008. He also admitted in
federal factual basis document that he knew the signatures on the documents he used to obtain the loans had been forged.
A federal grand jury indicted Vaughn on two false statement to bank charges and two aggravated identity theft charges on March 11. All four charges are felonies. He was arrested the same day.
For each of the false statements, Vaughn faces up to 30 years in federal prison, a fine of up to $ 1 million, and up to five years of supervised release. He faces up to 2 years in federal prison, a fine not to exceed $250,000, and up to one year of supervised release.
Count 1 of the federal indictment alleges that Vaughn made false statements to Southside Bank, which was formerly know as First Bank & Trust, on March 18, 2016, to obtain a personal loan in the amount of $35,000.
“In connection with the loan, a personal finance statement and business purpose statement were submitted to the bank,” the factual basis document that Vaughn signed stated.
The factual basis document went on to say that those documents and the promissory note contained another individual’s signature and that Vaughn knew those signatures had been forged with the application was submitted to First Bank & Trust.
According to the factual basis document, a cashier’s check was made payable to a company known as TVaughn Builders, which Vaughn owned and operated. That check was deposited into his First Bank & Trust account the same day.
Then on March 29, 2016, Vaughn used property that he co-owned with another person as collateral to secure a commercial loan in the amount of $110,000 from Texas Bank & Trust in Longview, the factual basis document states. The official borrower was TVaughn Properties LLC, a company that Vaughn owned and controlled.
According to the factual basis document, Vaughn admitted to using a notarized deed of trust with a forged signature on it for the collateral used to obtain the loan.
“The loan proceeds were applied to outstanding balances of other loans issued to me and/or my businesses by Texas Bank and Trust,” Vaughn said in the factual basis document.
Vaughn also said in the factual basis document that the resulting loss amount is more than $95,000.
According to the text of the federal indictment, Vaughn will be required to forfeit $146,000.
Vaughn served as a North East Texas Regional Mobility Authority board member until 2016. His bio on the NET RMA website states that he served six terms as the mayor of White Oak and is self-employed as a real estate developer, home builder, and licensed realtor. He has also served with the Longview MPO Executive Board, the State Rail Planning Task Force, and the Board of Trustees for the Longview Regional Medical Center.