TOPEKA, Kan. (KSNW) — A Plainville man has been convicted by a federal jury of multiple fraud charges in a scheme that caused a loss of over $10 million to multiple banks.

Tyler Gillum, 51, was convicted of 31 counts of bank fraud, one count of making a false statement in connection with a Small Business Administration guaranteed loan, and one count of making a false statement in a loan or credit card application.

Court documents and evidence presented at trial show Gillum owned and operated Plainville Livestock Commission, Inc. for 13 years, from 2006 to 2019. Between Jan. 2015 and August 2017, Gillum moved money between multiple banks in a scheme known as check kiting.

Check kiting happens when checks are continually written back and forth to “inflate” an account to look like there is more money than is actually there.

The scheme cost the banking system $10 million.

In addition, Gillum applied for and was given a $1.5 million loan secured by the U.S. Small Business Administration, and a $500,000 line of credit from Almena State Bank, while withholding the information that he had signed a promissory note of approximately $6.1 million to TBK Bank in Dallas.

“Because of the defendant’s crimes, banks suffered millions of dollars in losses. These fraudulent acts should be of concern to everyone, because the stability our nation’s banking system is vital to the financial health of this country,” U.S. Attorney Duston Slinkard said.

The FBI, U.S.D.A. Office of Inspector-General, S.B.A. Office of Inspector-General, and F.D.I.C. Office of Inspector-General investigated the case.