Tourism executives accused of bank fraud over failed Iowa music festival, officials say
.jpg "Two men were charged with bank fraud on Jan. 4, 2021, over a 2018 failed music festival in Cedar Rapids, Iowa. The former executives of Go Cedar Rapids are accused of misrepresenting revenue and projected expenses to defraud a bank, prosecutors say.")
Two former tourism executives were charged with bank fraud over a failed music event in Iowa, federal officials said.
Aaron McCreight, 46, of Dothan, Alabama, was the president and CEO of Go Cedar Rapids — an organization that promoted travel, tourism and events in the city of Cedar Rapids, prosecutors said in court documents.
Doug Hargrave, 54, of Puyallup, Washington, was the organization’s finance director. He reported to McCreight.
Both men were charged with one count of bank fraud on Jan. 4, the U.S. Attorney’s Office in the Northern District of Iowa reported in a news release. They defrauded a Cedar Rapids bank out of millions in 2018, prosecutors said.
Hargrave’s attorney told McClatchy News he did not have a comment, citing court rules and “ethical considerations.” Defense attorney information for McCreight wasn’t listed in federal court filings.
They are accused of misrepresenting ticket sales, revenue, expenses and expected losses from a lending bank for Newbo Evolve, a “three-day music and cultural event” with performing artists and bands including Maroon 5 and Kelly Clarkson, the news release states.
The event planned for August 2018 saw financial issues months before its start date. Expected ticket sales plummeted, and the organization didn’t have enough money to pay Kelly Clarkson or purchase alcohol, prosecutors said.
To save the festival from being canceled, Hargrave and McCreight are accused of providing the lending bank with a false budget multiple times to receive a higher loan, prosecutors said.
The bank lent the organization a total of $2.2 million. In the end, prosecutors said Newbo Evolve lost more than $2 million.
They have both signed an agreement planning to plead guilty. The two face a maximum sentencing of 30 years in prison, if convicted.
This story was originally published January 5, 2022 at 9:46 AM with the headline "Tourism executives accused of bank fraud over failed Iowa music festival, officials say."
