stickyimage

Fraud Friday – Loan Officer who Approved Loans Above his Authority Pleads Guilty

Tags: , , , , , , , , , , ,

ColemanReportLogo04051253

February 21, 2014

By Bob Coleman
Editor, Coleman Report

JackieCantleyAnother community banker is going to jail. Not for lining his pockets, but for being a sloppy banker.

Our perp had a $250,000 loan approval limit.

Says the government in the plea agreement filed Wednesday, “Further, to authorize loans, Bank policies and procedures and sound banking practices required that Cantley determine that a loan applicant was credit-worthy, had sufficient collateral and was of good character. This in turn entailed that Cantley obtain documents such as tax returns, personal and business financial statements (including bank statements and wage statements, guarantor information, credit reports, cash-flow analyses, appraisals, promissory notes, and deed of trust that would establish that a loan applicant was credit-worthy, had sufficient collateral and was of good character in order to receive a Bank loan.”

West Virginia banker Jackie Cantley’s crime?

1. Approved a $335,000 loan to his cousin, greater than his $250,000 loan limit.
2. Approved the loan without sufficient collateral, without a loan application, tax returns and financial statements, “knowing the borrower was not credit-worthy for the loan.”
3. Forged borrower signatures on loan documents.
4. Transferred funds to other accounts without authorization.
5. Approved multiple loans to another borrower totaling over $1 million, again without documentation such as tax returns, financial statements, guarantor information.
6. Failed to perform a cash-flow analysis and obtain sufficient collateral “knowing the borrower was not credit-worthy for the loan.”
7. Did the same thing on another $350,000 loan

Read the Plea Agreement Here

3 years ago by in . You can follow any responses to this entry through the | RSS feed. You can leave a response, or trackback from your own site.