Regulators Indict Bank President, Six Officers on Massive Fraud Charges

by devteam January 15th, 2013 | Share

Seven bankers have been indicted by arnfederal grand jury of conspiring to defraud their Georgia bank.  The thirty-five count indictment named the formerrnpresident of the bank and six other bank officers, accusing them ofrncontributing to the failure of First National Bank of Savannah.  The bank failed in 2010, costing the FederalrnDeposit Insurance Corporation (FDIC) $90 million.    </p

The seven allegedly colluded to hide thernbank’s deteriorating condition and its millions of dollars in non-performingrnloans from the bank, members of the bank’s Board of Directors and federal regulatorsrnby loaning money to unqualified nominees to make interest and other payments onrnnon-performing loans.   They also arernaccused to attempting to entice others to take over bad loans with hiddenrnpromises, side deals, and other terms unfavorable to First National Bank andrnrecruiting other banks to fund non-performing loans based on fraudulentrninformation about the loans’ quality. rnThe defendants allegedly falsified and fabricated numerous bankrndocuments and records to further their scheme. rn</p

Two of the officers…

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About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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