Woman arraigned on fraud charges

A Poplar Bluff, Mo., woman was arraigned in federal court Thursday morning after her recent indictment on multiple counts of fraudulent bank loans totaling more than $100,000.

Jessica Elizabeth Conley, 40, made her initial appearance before U.S. Magistrate Judge Lewis Blanton on Wednesday afternoon, according to special assistant U.S. attorney Tim Willis, who appeared for assistant U.S. attorney Morley Swingle.

Blanton, Willis said, set Conley's arraignment for 11 a.m. Thursday.

No detention hearing will be held as "she's being released on bond," Willis said.

A federal grand jury handed down a five-count indictment July 18 against Conley.

The indictment alleges Conley "knowingly made a false statement for the purpose of influencing the action" of Doral Bank on Oct. 19, 2006, and June 29, 2007, on applications for loans in the amounts of $19,000 and $23,500, respectively; of SunTrust Bank on Oct. 26, 2006, and Aug. 8, 2007, on applications for loans in the amount of $20,000 and $25,000, respectively; and of JPMorgan Chase Bank on June 25, 2007, on an application for a $23,340 loan.

The indictment further alleges in each count the false statement Conley made was that James C. Johnson was the cosigner for the loan when she "knew and believed" Johnson had not agreed to borrow the funds or act as a cosigner on the loan application and had not signed the application.

If convicted, Conley faces a punishment of not more than 30 years in prison and/or a fine of not more than $1 million on each count.

Conley was arrested during the execution of a federal search warrant on her home by agents with the FBI and officers with the Poplar Bluff Police Department.

"Officers uncovered what they believed were items used in the growing of marijuana," deputy police chief Jeff Rolland said. "A small amount of marijuana was located, along with drug paraphernalia."

A state search warrant was applied for through the Butler County prosecuting attorney's office, and patrolman Danny Hicks arrived with it about 11:30 a.m.

Police officers removed such items as lights, numerous plastic containers and bottles of fertilizers from the single-story home.

Rolland said the items for the suspected indoor marijuana grow were found in a closet of an unused bedroom.

"The items will be sent to the Missouri State Highway Patrol crime lab for evaluation and future state charges will be applied for," Rolland said.

About 12:50 p.m., Rolland and police Capt. Dave Sutton transported Conley to Cape Girardeau, where she was turned over to the U.S. Marshal Service at the federal courthouse.