Lake City rejects allegations in Khan fraud: 'One bank always loses'

WARSAW — Officers with Lake City Bank say they’re frustrated by allegations that they enabled a years-long financial fraud scheme.

Several officers of the Warsaw-based bank, including CEO David Findlay, have been accused in court of benefiting from a check-kiting scheme carried out between 2011 and 2019 by former Elkhart business owner Najeeb Khan. The former owner of Interlogic Outsourcing Inc. recently pleaded guilty to federal bank fraud and attempted tax evasion charges, several years after he and the company filed for bankruptcy.

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