July 5, 2013
By Bob Coleman
Editor, Coleman Report
Guy Mitchell borrowed more than $40 million from the now-failed Florida based Integrity Bank in 2005 and 2006 supposedly to finance his interests in various hotels around the country.
One of these loans was to acquire and renovate the Casa Madrona Hotel, a luxury property overlooking the water in Sausalito, California.
During that time, Mitchell was bribing Douglas Ballard, a former loan officer at Integrity, with hundreds of thousands of dollars.
Although Mitchell did use some of the money he received from Integrity for hotel purposes, he never performed any renovations on the Casa Madrona. Instead, he used loan draws to buy a private island in the Bahamas, to travel by private jet, and to pay for Miami Heat tickets, fancy jewelry, expensive cars, and a mansion in Coconut Grove. Mitchell, the bank’s largest borrower, eventually defaulted on his loans, contributing to Integrity Bank’s failure.
Douglas Ballard previously pleaded guilty to conspiracy and tax evasion. Additionally, Todd Foster, another Integrity employee, pleaded guilty to securities fraud.
Mitchell, 53, of Miami, Fl., could receive a maximum sentence of 5 years in prison and a fine of up to $250,000.
Sentencing is scheduled for October 10, 2013.