Fraud Friday | Coleman Report

Fraud Friday – Feds Claim $179 Million USDA B&I Loan Fraud, Arrest First Farmer Financial’s Nik Patel

October 3, 2014 By Bob Coleman Editor, Coleman Report Business Loan Express’ Patrick Harrington’s $30 million loan fraud conviction was based on creating a lot of fake paperwork and recruiting straw buyers to get an SBA loan approval number, and then selling the note to the secondary market. That seemed like a lot of work…

Fraud Friday – FDIC Sues Former Bank of Commonwealth Officials

September 26, 2014 By Bob Coleman Editor, Coleman Report On the eve of the three year deadline to file, the FDIC filed an $11 million lawsuit against former Bank of Commonwealth executives for negligent banking practices. Says the Virginian-Pilot; “The FDIC has lost more than $300 million as a result of the bank’s failure. “The…

Fraud Friday – Another Community Banker Guilty of TARP Fraud

September 12, 2014 By Bob Coleman Editor, Coleman Report “Don Langford, former TierOne senior executive and chief credit officer, conspired with others to hide losses at the bank by cooking the bank’s books and reporting falsified information to stakeholders, regulators, external auditors, and the investing public,” says SIGTARP. “Langford and others engaged in fraud in…

Fraud Friday – Another Coleman Report about a Bookkeeper Ripping off your Borrower

August 29, 2014 By Bob Coleman Editor, Coleman Report At the beginning of the month I wrote — One of my professors in my MBA program at the suddenly stopped his lecture in mid-sentence and slowly stared at the class. Going completely off-topic he said, “I don’t care how big your company is, NEVER, NEVER,…

Fraud Friday – Bank Robber Files Workers Comp Claim

August 15, 2014 By Bob Coleman Editor, Coleman Report Yeah, I’m off topic a bit with this one, but the story is so outlandish I had to share. A SoCal Bank of America assistant manager said she was held hostage by two men, forced to wear a bomb and told to drive to a Bank…

Fraud Friday – The Relatively Green Loan Officer Defense Fails – VP Guilty on 44 Fraud Counts

August 1, 2014 By Bob Coleman Editor, Coleman Report The defense attorney told the jury former Fifth Third Relationship Manager Paulette Roberts was not a greedy vice president but a relatively green loan officer working with an even greener credit analyst at the bank. The jury didn’t buy it, bringing in 44 fraud, bribery and…

Guilty Plea for SoCal businessman in $6 million SBA Loan Fraud

July 25, 2014 By Bob Coleman Editor, Coleman Report “Attempts to use SBA’s 7(a) loan program as a personal checking account will be met with the full force of the U.S. justice system,” says SBA Inspector General Peggy E. Gustafson. “Together with our law enforcement partners, the OIG will continue to ensure those who commit…

Fraud Friday – Another Wilmington Trust Banker Indicted

July 18, 2014 By Bob Coleman Editor, Coleman Report Peter Hayes joins fellow Wilmington Trust alums caught in the crosshairs of SIGTARP prosecutions. SIGTARP’s (Special Inspector General for the Troubled Asset Relief Program) specialty is to jail community bankers who’s malfeasance contributed to loan losses to their institution, thus creating TARP investment losses. The 48…

Fraud Friday – Community Bank Commercial Loan Officer Guilty of False Statements

July 11, 2014 By Bob Coleman Editor, Coleman Report Another community bank commercial loan officer is facing jail after the Feds wrote off a $500,000 loss from a TARP fund investment. Former senior vice president Michael Yancey lied about the terms of a loan he secured on behalf of a bank customer in order to…

Fraud Friday – Four Georgia Community Bankers Heading to Prison

June 20, 2014 By Bob Coleman Editor, Coleman Report The FDIC price tag for the failure of Savannah First National Bank was $90 million. Now four Georgia community bankers are heading to jail. Former President & CEO Edward McMath III was sentenced to three and a half years this week, and slapped with a $9.7…