August 7, 2020
By Bob Coleman
Editor, Fraud Friday
Alabama Community Bank President Sentenced to One-Year in Jail for Fraud
A fraudulent loan scheme by 60-year old Jimmy Monk for illegally issuing numerous loans from existing PrimeSouth bank client accounts without their knowledge has landed the former CEO one-year in federal prison.
Monk pled guilty to applying funds to other loans he was servicing that were past due or at risk of default. This was done to cover up the real status of loans he had approved and to prevent losing his position as President with the bank.
For example, in June of 2015, Monk obtained an unauthorized advance of $22,800 from a PrimeSouth Bank loan issued to the Elmore County Economic Development Authority and applied the proceeds of that advance to the unrelated loan accounts of other persons. His scheme took place over the course of at least ten years and resulted in hundreds of thousands of dollars from unauthorized loans, all of which was credited by the bank back to the accounts once the activity was discovered. In addition to his prison sentence, Monk will have to pay $184,000 in restitution to the bank and a fine of $20,000.00.
“Wealth, power, and privilege is not a license to break the law,” says Alabama U.S. Attorney Louis Franklin. “Monk abused his position of authority and influence within the community and betrayed the trust of those he was supposed to serve. This prosecution should send a message to anyone in a position of power that such abuse will not be tolerated.”
“This type of white collar crime can seriously undermine the public’s trust in our financial institutions,” adds FBI Special Agent in Charge Jewell. “The FBI stands ready to work alongside our state, local, and federal partners to investigate and prosecute these cases and hold the defendants responsible for their actions.”