Former President of SouthernTrust Bank Pleads Guilty to Falsifying Records – Fraud Friday

June 28, 2024

Delaney Sexton
Contributing Editor

Former President of SouthernTrust Bank Pleads Guilty to Falsifying Records – Fraud Friday

“The lack of professional responsibility demonstrated by Steven Cook diminishes the faith consumers place in the banking process,” says FBI Springfield Field Office Acting Special Agent in Charge Shannon Fontenot. “Financial fraud is a serious crime with serious consequences and the FBI will investigate anyone who takes advantage of their trusted position of employment for their own personal gain.”

Steven Cook, the former President of SouthernTrust Bank, pleaded guilty to three counts of aiding and abetting the making of false bank entries. He fraudulently facilitated sales of real estate to Lawler and Maze Properties, LLC on three separate occasions in 2022:

Count 1

In April 2022, Cook met with two others to discuss a proposed sale of seven properties from Results Home Buyers 2, LLC to Lawler and Maze Properties, LLC. Cook said that SouthernTrust Bank would lend the money for the purchase. All parties were aware that the transaction was a real estate purchase, not a refinance. The loan proceeds were going to fund the entire purchase, and Lawler and Maze would not be providing any cash. Nonetheless, Cook knew the transaction needed to appear as a refinance for the bank to approve the funding.

Bank documents were going to reflect that the bank was funding an 80% sham refinance transaction. For example, there was an assignment of beneficial interests that stated that Lawler and Maze Properties already owned the properties. In addition, Cook used a false credit approval form created by the bank which stated a purchase price of $545,152 and a cash downpayment of $109,030. The real purchase price was $436,122 with no cash downpayment from the buyer. He also submitted a falsified purchase and sales agreement with the altered purchase price.

Count 2

In August 2022, he repeated his fraudulent acts, this time involving the purchase of four real estate properties from Southern Property Buyers, LLC. There was an agreement between Cook, Lawler and Maze Properties, and the seller that the sales amount would be 80% of the appraised value. The appraised value was $413,000, so the sale amount was $330,400.

Once again, Cook made a false credit approval form that listed the purchase price as $413,000 with a cash downpayment of $82,600. In actuality, there was no cash downpayment and the purchase price was $330,400. Four separate real estate purchase agreements included the altered numbers. There was also a HUD-1 closing statement that stated a seller financing of $81,631.76.

Count 3

In the final fraudulent act, Cook helped with another loan for Lawler and Maze Properties to purchase real estate. The sales price of the property was going to be 80% of the total appraised value. The appraised value was $107,500, which made the actual sales amount $86,000. There was another false credit approval form which falsely stated that the borrowers were going to provide an injection of $21,500. The bank’s board approved the loan.

Sources:
Stipulation of Facts
Information/Counts
U.S. Attorney’s Office Press Release