Oklahoma City, Oklahoma– TIMOTHY JAY WILLIAMS, 54,of Edmond, Oklahoma, and STEPHEN L. BUTZ, 53, of Blanchard, Oklahoma, were both sentenced this week to serve 41 months and 31 months respectively for bank fraud that they committed against the Bank of Union and other financial institutions, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma. The men were also ordered to pay restitution of $1,260,725.43 to their victims.
Williams was the owner of Lindsey Street Motors, a used car lot in Norman, Oklahoma, and Butz was his finance manager. According to court documents, Williams entered into a Commercial Security Agreement with The Bank of Union on behalf of Lindsey Street Motors that granted the bank a secured interest in all used motor vehicles, proceeds, and products of Lindsey Street Motors. In return, The Bank of Union extended to Williams and Butz a line of credit to purchase used vehicles and hold them as inventory until sold. After obtaining the loan proceeds, Williams and Butz sold collateralized vehicles out of trust, without the knowledge or permission of The Bank of Union, and did not use the sales proceeds to repay the Bank. In addition, after purchasing vehicles with The Bank of Union financing, Williams and Butz obtained duplicate vehicle titles from the Oklahoma Tax Commission, which they provided to buyers, without notifying the Bank of Union of the vehicle sales or repaying Lindsey Street Motors’ line of credit.
Both Williams and Butz pleaded guilty before United States District Judge Judge Miles La-Grange in August of 2016. Each admitted that their conduct caused a loss in an amount between $550,000.00 and $1,500,000.00.
At their sentencing hearings this week, Williams was sentenced to 41 months in prison, to be followed by 3 years of supervised release. Butz was sentenced to serve 31 months in prison, also to be followed by 3 years of supervised release. In addition, Judge Miles-LaGrange ordered both men to pay $1,260,725.43 in restitution to the victims of their conduct, for which they are jointly and severally liable.
This case is the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Julia E. Barry.