Uniontown councilman accused of bank fraud
Federal agents from the U.S. Department of Treasury arrested Uniontown’s director of accounts and finance Friday morning on charges of conspiracy to commit bank fraud. Uniontown police, along with the FBI agents, assisted in serving a warrant for Marlin Sprouts Jr. at his home on Bailey Avenue at 6:30 a.m.
He was taken into custody without incident.
Sprouts said Friday afternoon that he was handcuffed early Friday and taken to federal court in Pittsburgh and then returned to his home following his arraignment.
Sprouts was released on $10,000 unsecured bond.
Sprouts said the arrest stems from a real estate venture that “went sour” three or four years ago.
Sprouts, the first black ever elected to serve a full term on City Council, declined to discuss specifics of the case against him, but he said he backed out of the business deal after he believed he was being “used.” However, he said that his name remains connected to the deal.
“I’ve got to stand up like a man. I will clear my name. I’m cooperating fully with the authorities because I have to clear my name of this,” Sprouts said, acknowledging that his arrest has hurt his image.
Federal officials said they could not divulge any further information about the arrest Friday.
“At this time, all we can say is that agents and officers were there (at Sprouts’ home) on official business,” said Andy Hromoko, spokesman for the criminal investigation division of the Internal Revenue Service.
According to the Department of Treasury’s Web site, the criminal investigation division investigates potential criminal violations of the Internal Revenue Code and related financial crimes.
Sprouts was sworn in to office three weeks ago after defeating incumbent Councilman Bob Cerjanek in the general election in November.
Uniontown Mayor Ed Fike declined comment on the arrest until he knew more details. He said, however, he was shocked by the news.
“I always knew him to be a good guy,” Fike said, noting that the city will do whatever is needed as a result of the incident. “Whatever is prescribed by law is what we will have to do.”
The arrest comes days after Sprouts announced that the city is in “deep, deep” financial trouble, with a general fund deficit of $1.2 million.
Sprouts worked for a utility company and in mills before he received an education degree from California University of Pennsylvania last year. He works as a substitute teacher in the Uniontown Area School District.
Sprouts said last year that he decided to enter the race for council after he brought a problem with property he owns to City Hall and received no help.