President and CEO of HomeBank of Arkansas, John B. Stacks, of Damascus, was indicted Tuesday by a Federal Grand Jury on 11 counts of money laundering and fraud relating to a small business disaster loan he obtained in 2009, according to the Eastern District of Arkansas U.S. Attorney’s office.

Stacks, who heads the Arkansas bank that has branch locations in Greenbrier and Damascus, also owns Mountain Pure, LLC, a bottled water company.

According to Stacks’ indictment, Stacks obtained a Small Business Administration disaster relief loan in 2009 in the amount of $703,300 after claiming Mountain Pure Water equipment kept on his farm in Damascus was destroyed in a tornado on May 2, 2008.

Stacks allegedly claimed more than $500,000 worth of equipment was at the farm when the tornado struck the area.

Wire fraud and money laundering charges stem from three transfers of money from the SBA in Kansas City, Mo., to Stacks General Account at Stacks’ Greenbrier HomeBank branch.

The transfers, which were sent in March and April in 2009 were $526,100, according to the indictment.

False claim and statement charges are related to the loan authorization and agreement and other related documents, oral and written statements Stacks submitted to the SBA in order to secure the loan, according to the U.S. Attorney.

Stacks is indicted on three counts of wire fraud, three counts of money laundering, one count of submitting a false claim to the SBA and four counts of making a false statement.

If convicted, Stacks faces maximum penalties of up to 20 years for wire fraud, up to 10 years for money laundering, up to 5 years for false claim; and up to five years imprisonment for false statements.

(Staff writer Courtney Spradlin can be reached by email at or by phone at 505-1236, or on Twitter @Courtneyism. To comment on this and other stories in the Log Cabin, log on to Send us your news at