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Fraud Friday — Community Bank VP Indicted for Approving Loans to Unqualified Borrowers

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October 11, 2013

By Bob Coleman
Editor, Coleman Report

Jackie D. Cantley

Reads the indictment, “….repeatedly approved loans for a number of individuals and related business entities, in violation of the Bank’s policies and procedures, and contrary to sound lending practices.”

A West Virginia small business banker did the following says a Grand Jury;

a) Approved loans to borrowers who did not qualify for the loans

b) Forged signatures on loan-related documents, such as for his cousin who was in prison at the time

c) Failed to obtain, record, and compile accurate documents required to be in loan files prior to disbursing credit

d) Authorized disbursements without receipts or supporting documentation from Bank’s borrowers

e) Failed to record accurately loans in the Bank’s books and records

f) Transferred funds from one borrower’s account to another borrower’s account without authorization

g) Approved loans greater than his lending limit

How much did he take from the bank’s till? Says the US Attorney our alleged perp drew $18,959.11 from his cousin’s line of credit to “an account for J.H., who then obtained a cashier’s check with those funds to purchase a pizza business in the name of J.H. and [the banker] said transfer of funds being contrary to the purpose of [the cousin’s] loan.”

From his bio, “Jackie D. Cantley is a Commercial Loan Officer with The First State Bank, in Barboursville. Cantley has a BBA in Finance from Marshall University. Cantley recently completed his Masters of Business Administration program in August.

As a commercial lender, Cantley is responsible for developing new business, underwriting, and the structuring of commercial loans. Cantley also manages and maintains his existing portfolio. Cantley has helped The First State Bank win the SBA Community Bank of the Year award for commercial lending three consecutive years (2005, 2006 & 2007).”

Read the 16 page indictment here

Read and watch local news coverage here

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