Hunter
01/28/22
A second GO Cedar Rapids executive has pleaded guilty to bank fraud in federal court.
47-year-old Aaron McCreight, of Dothan, Alabama, former president and CEO of the tourism agency, pleaded guilty Thursday to bank fraud. 55-year-old Douglas Hargrave, of Puyallup, Washington, former finance director of the now defunct organization, pleaded guilty on Wednesday to bank fraud.
The men admitted that they defrauded Bankers Trust by sending a fraudulent budget to them in order to secure increased funds. The false document led Bankers Trust to approve another $250,000 in funding.
“Newbo Evolve,” which featured concerts from Kelly Clarkson and Maroon 5, was a financial failure, selling only about 600 three-day passes and about a third of the 22,000 general admission tickets they had expected. The event lost $2.3 million and led to Bankers Trust firing their local president. It also put Go Cedar Rapids out of business.
McCreight faces up to 30 years in federal prison, a $1 million fine and up to five years of supervised release following any prison term. Restitution in the case also will be ordered at sentencing. McCreight was allowed pretrial release but had to surrender his passport. He’s currently the tourism director in Dothan Alabama; their board of directors issued a statement standing behind McCreight and recently voted unanimously to retain him.