Former Winchester resident sentenced for bank fraud
Published 1:09 pm Monday, February 20, 2023
A former Winchester resident is facing over three years of jail time after pleading guilty to bank fraud last year, according to a news release.
Christopher “Rusty” Custer, 55, formerly of Winchester – he currently resides in Texas – was sentenced to 41 months in federal prison last Wednesday in U.S. District Court in Lexington after pleading guilty last October.
According to court records, Custer admitted to lying to Traditional Bank to obtain two loans, totaling more than $1.5 million, for the purchase of residential and commercial property. He also admitted defrauding one victim to obtain a $75,000 personal loan. Custer said he provided the bank and the victim false and manipulated financial statements suggesting he was worth more $6 million.
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Custer also exaggerated the value of his personal assets, claiming to own roughly $300,000 in household goods and furniture while seeking further loans from the bank and victim, according to court records.
Even after repaying the debts he owed to the bank and victim, Custer still owes more than $500,000 in restitution, according to a news release.
Under federal law, Custer must serve 85 percent of his prison sentence, upon his/her/their release from prison will be under the supervision of the U.S. Probation Office for five years.