Fraud Friday — 75-Year-Old Ex-Community Bank CEO Gets 2 Years in Jail
December 5, 2014
By Bob Coleman
Editor, Coleman Report
The Oklahoma banker who testified against his borrowers on loan fraud charges will spend 2015 and 2016 in a federal prison the judge said.
The strategy didn’t work out well for the prosecution for one case. After a three day trial in August the borrower, Victor Garrett, was exonerated and declared not guilty by the jury.
In 2009, Garrett, the owner of Arbuckle Wilderness Center Park, an exotic animal park applied for a $3.4 million USDA b&I loan with an 80% federal government guaranty. The bank’s legal lending limit was $1.2 million.
That would have been fine except Garrett had already maxed out his borrowings at the bank.
So, our banker, Dub Moore, got a straw man to borrow $480,000 in November 2009 and the money went into Garrett’s account.
Reported NewsOK, “Garrett admitted that he received the proceeds from the excessive loan, but denied any intentional wrongdoing.
“‘He did get the money, but he never intended to defraud the bank and never conspired with anyone,’ said John Coyle, Garrett’s attorney, adding that his client used his loans for Arbuckle Wilderness.”
The jury agreed.
Another borrower, Roy Wesberry was found guilty on bank fraud charges in October.
In addition to the two years in jail Dub was slapped with $14 million in restitution.
First National Bank of Davis was closed in 2011 with a loss of $26 million to the FDIC.
Previous Coverage: Bank President Pleads Guilty, Agrees to Testify Against Borrowers Part 1
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