Bourbonnais businessman Gregory Yates, 54, and his son, Terrance Yates, 32, pleaded guilty Monday to defrauding a federal business loan program of $1.7 million and face up to 30 years in prison.
According to the U.S. Attorney's Office, both men admitted to using a construction project in Casey, IL., to pocket $1.7 million in federal grants.
In May 2009, Gregory Yates purchased a manufacturing facility, tools and equipment, owned by Casey Tool and Machine. At the time of the purchase, the company was in bankruptcy.
Later that year, the Yates applied for a $5.95 million USDA loan that included a budget of $1.7 million to perform construction and improvements.
The father and son then used their own construction company to complete improvements. The men admitted to inflating the value of labors and material.
Ultimately, prosecutors say, both men admitted to lying about the work done to secure that initial $1.7 million.
They are scheduled to be sentenced in May.