Former Mt. Vernon Bank Officer Pleads Guilty to Arson, Bank Fraud

A former vice president and loan officer for a bank in Mt. Vernon admitted in Federal court in Benton on Friday morning to multiple acts of arson and bank fraud.

52-year-old Richard Pigg pleaded guilty to six counts of bank fraud and three counts of arson.

Prosecutors say Pigg used his position to defraud more than $600,000 from Community First Bank of the Heartland in Mt. Vernon to purchase investment properties and to pay personal expenses.

According to court documents, Pigg convinced bank customers to buy rental properties in Centralia, Mt. Vernon, Murphysboro and West Frankfort on his behalf through mortgage loans financed at the bank. Pigg concealed his personal financial interest from the bank. 

The victims received income from the rental properties, but Pigg increased the amount financed in the mortgage loan by thousands of dollars above the purchase price and redirected the excess loans to his own accounts and to pay his own debts.

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. He also burned a four-unit apartment complex in West Frankfort.