BENTON – The federal fraud and arson case against a former area banker was continued Wednesday until May when he’s scheduled to be tried on an 11 count indictment in Benton Federal Court in Benton.

Former Vice President of Community First Bank of the Heartland, Richard B. Pigg, is accused of securing fraudulent commercial real estate loans by burning down his investment properties to collect insurance.

The scheme included Pigg asking several bank customers in Murphysboro, West Frankfort, Centralia, and Mt. Vernon to purchase real property in their name to be used as rental properties on his behalf through mortgage loans financed at CFB.

He then allegedly originated and approved loan paperwork for the rentals through his position, but without disclosing the true nature of his relationship with the bank customers or ownership interest in the properties to CFB.

He would then increase the financed amount of money on these loans by thousands of dollars to show excess loan process or cash made payable to the customers without their knowledge or permission.

After loan funds were disbursed, Pigg then allegedly arranged to have fires set to destroy the mortgaged properties so he could collect the insurance money.  

He was arrested in 2021 in Texas where he now resides outside of Dallas.

He was released on bond pending his trial and is not currently in custody. Pigg’s final pre-trial hearing is set for May 4th in Benton Federal Court with a jury trial set for later that month.