SALT LAKE CITY – The former mayor of Cedar Hills, Utah on Wednesday was sentenced to a year in prison for loan fraud in connection with his borrowing $57,000 purportedly to buy a new Land Rover from now-defunct HeritageWest FCU using phony information.

Eric Richardson pleaded guilty to being a straw man, borrowing $130,000 from the credit union, which is now part of Chartway FCU, and two banks, then passing the funds to a business partner without purchasing any of the three vehicles. The partner, Christopher Hales, was convicted earlier of a scamming banks and credit unions of almost $13 million with a straw man scheme.

Richardson, 38, was ordered to pay $110,000 in restitution to the three lenders.

Richardson resigned as mayor in June without explanation. Federal prosecutors charged him with bank fraud three days later. He served as mayor since 2010 and on the City Council before that.


Subscribe Now

Authoritative analysis and perspective for every segment of the credit union industry

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.