5th Former Bankrupt First NBC Bank Borrower Pleads Guilty to Multi-Million Dollar Fraud Conspiracy | Crime / Police
A fifth major client of former First NBC bank has pleaded guilty to participating in a multi-million dollar scheme allegedly orchestrated by the founder of the collapsed bank to defraud First NBC and its shareholders.
Warren Treme, a Metairie real estate developer who was accused of lying with the help and knowledge of First NBC officials to secure more than $ 6 million in loans, admitted to a single conspiracy charge on Wednesday. committing bank fraud after entering into a plea deal with the United States attorney’s office, according to files filed at the U.S. District courthouse in New Orleans.
In return, prosecutors said they would recommend that Treme be sentenced to a prison term of around three years, although a judge could ultimately give him up to 30 years in prison. U.S. District Judge Sarah Vance tentatively set Treme’s January 6 sentence.
Another actor in the alleged multi-million dollar scheme to defraud First NBC Bank and its shareholders pleaded guilty to his role on Wednesday …
Treme’s admission in the case follows those of former First NBC borrowers Kenneth Charity, Jeffrey Dunlap, Gary Gibbs and Gregory St. Angelo, who was also the bank’s general counsel. Charity, Dunlap, Gibbs and St. Angelo all pleaded guilty.
A sixth former borrower, hotelier Arvind “Mike” Vira, faces charges filed in a briefing note rather than an indictment before a grand jury, making it clear that, like the others, he will also plead guilty and cooperate with prosecutors.
Grand jurors this summer indicted another former First NBC borrower, Frank Adolph Jr., alongside bank founder Ashton Ryan and two of his former employees, William Burnell and Robert Calloway. Ryan, Burnell, Calloway and Adolph have all pleaded not guilty to conspiracy to commit bank fraud, among other crimes that prosecutors say led to the failure of First NBC in 2017.
Court documents signed by Treme on Wednesday indicate that he co-owns several companies with Ryan and that he initially borrowed from First Bank and Trust, where Ryan worked as chairman before leaving to found First NBC in 2006. Prosecutors stated that Ryan “exercised his authority over Treme’s loans” with First Bank and Trust, even though his business relationship with Treme was clearly in a conflict of interest.
The founder of the failing bank First NBC pleaded not guilty on Friday afternoon to charges of overseeing a multi-million dollar conspiracy to defraud …
Treme then turned his business over to First NBC from 2008 to April 2017. On paper, another bank employee served as Treme’s loan officer, while Burnell technically approved the loans and assigned them the risk rating. credit. But, prosecutors charged, Ryan worked hand in hand with Burnell and Treme as Treme secured millions of dollars in loans by filing documents all three knew to be false.
Treme would then use the loan proceeds to make payments on previous loans and hide the fact that he couldn’t keep up with loan repayments because he was broke.
However, sometimes he didn’t even use the money to pay off debts, according to court documents. On one occasion, he spent $ 300,000 gambling and traveling the Caribbean, although Ryan and Burnell convinced First NBC board members that Treme had used that money to make up for his loan repayments.
Treme admitted to spending an additional $ 14,000 for expenses associated with a business he co-owned with Ryan, according to court documents.
The NBC collapse was the costliest for the US banking industry since the end of the 2008 financial crisis. Hancock Whitney Bank eventually took over the $ 1.6 billion in deposit accounts and some loans from First NBC. , although the Federal Deposit Insurance Corp. was left to cover almost a billion dollars.
Vance held Treme’s plea hearing virtually due to the coronavirus collection restrictions. His lawyer could not be reached immediately for comment.
The US attorney’s office has charged another of the former clients of the collapsed First NBC Bank with bank fraud, alleging that Metairie itself …