Tim Vaughn has entered a plea deal admitting to defrauding a Longview bank.
Sentencing terms of the deal against the former chairman of the Republican Party of Gregg County and six-term White Oak mayor have been sealed by a federal judge, but Vaughn has agreed to forfeit $146,000 in cash.
An FBI investigation found that Vaughn forged signatures on loans with First Bank & Trust-East Texas on March 18, 2016, and with Texas Bank and Trust on March 29, 2016, according to records. Proceeds from the latter loan were applied to outstanding balances on other loans issued to Vaughn and his businesses by the bank, resulting is a loss of more than $95,000.
Read more from CBS19's newspaper partner, the Longview News-Journal.
