Neb. businessman accused in fraud scheme authorities say defrauded lenders, insurers of $8M

Neb. businessman indicted in alleged fraud scheme

OMAHA, Neb. — A Fremont businessman falsified financial statements for his golf course construction company to defraud lenders and insurers out of more than $8 million, according to a 14-count federal indictment.

Thomas Herink, president and chief executive officer of Golf Services Group Inc., is accused in the U.S. District Court filing of falsifying financial statements between June 2003 and January 2006 to obtain loans and construction bonds that were later defaulted on.

Herink, 44, was indicted late Tuesday on 11 counts of wire fraud, one count of bank fraud and two counts of making a false statement to a bank. Sentencing guidelines call for a sentence of up to 310 years in prison and $5.8 million in fines if convicted.

No number was listed for Herink in Nebraska. Court records did not list his attorney.

Fremont-based Golf Services Group is described in court documents as a construction firm established in 1996 to focus on building and renovating golf courses. It later expanded to include road and infrastructure projects and opened subsidiaries in Utah and Texas.

No numbers were listed for Golf Services Group Inc. in any of those states.

Herink’s business is not affiliated with Golf Services Group LLC, a golf-management software company based in Blackwood, N.J., spokesman Damon Klepczynski said.

Herink is accused of defrauding two lenders and two insurers. Omaha-based UMB Bank lost $3.3 million; TFS Capital Funding, an arm of Terex Financial Services, lost $1.7 million; Cedar Rapids, Iowa-based United Fire and Casualty Company lost $2.1 million; and Des Moines, Iowa-based Employees Mutual Casualty Company lost $971,000, according to the indictment.

Court documents say Herink carried out the scheme in order to participate in large construction contracts throughout the U.S.