A former vice president and loan officer for Community First Bank of the Heartland in Mt. Vernon admitted in federal court to multiple acts of arson and bank fraud.
The U.S. attorney reports 52-year-old Richard Pigg pleaded guilty to six counts of bank fraud and three counts of arson.
According to court documents, Pigg convinced bank customers from 2011 to 2016 to buy rental properties in Murphysboro, West Frankfort, Centralia and Mt. Vernon on his behalf through mortgage loans financed at the bank.
He concealed his personal financial interest from the bank while facilitating the loans.
In addition to bank fraud, Pigg also pleaded guilty to federal arson charges for burning the Centralia rental property twice. He used the insurance benefits from the fires to pay off the mortgage loan on the property.
Pigg also burned a four-unit rental apartment complex in West Frankfort in January 2016 soon after renewing one insurance policy and less than two weeks after taking out a second insurance policy on the property.
