June 19, 2015
By Bob Coleman
Editor, Fraud Friday
As President and Chairman Doughty’s loan approval limit was capped at $500,000.
The feds allege he and a partner were heavily invested in a Colorado real estate scheme that unraveled during the Great Recession. Doughty recruited buyers and approved 14 loans for the lots, many with no money down and convoluted no interest payment structures.
In 2006, Doughty promised one buyer a lot bought for $650,000 would sell in 2008 for $1 million.
The bank funded loans for more than $10 million for the development.
Each loan exceeded Doughty’s individual lending authority and most were issued without bank loan committee or board approval, including a $580,000 loan to his partner’s personal company.
Doughty and his partner face the obligatory hundreds of years in prison and millions of dollars in fines.