June 8, 2018
By Bob Coleman
Editor, Fraud Friday
Fraud Friday — Founding Community Bank CEO Jailed for 48 Months
“This sentencing holds the defendant accountable for misusing his position as the bank President and CEO to fabricate fraudulent loans with straw borrowers, evade internal controls, and withhold information from the bank’s Board. The underlying conspiracy cost the bank millions of dollars. This case demonstrates the importance of cooperation among law enforcement partners to combat such criminal conduct and maintain the integrity of financial institutions,” says FDIC Inspector General Jay N. Lerner.
“When a bank official uses their position for their own personal profit they do more than commit a federal crime, they abuse their power and violate the public’s trust. Mr. Norris’ sentence today is proof of the commitment of the FBI to work with other law enforcement agencies to find these offenders and hold them accountable,” says John Strong, Special Agent in Charge of the FBI in North Carolina.
Sentenced this week, Robert Norris Jr, 50 also is ordered to pay $2.3 million in restitution for his guilty plea of bank fraud.
Robert was the founder, President and CEO of North Carolina-based Coastal Bank and Trust which opened its doors in 2009.
In June 2013, it was discovered Robert made fraudulent loan transactions with straw borrowers where the true beneficiaries of the loans were friends and himself.
The $2.4 million in loans included unsecured lines of credit, small business loans, and mortgages for commercial and residential properties.