TIFTON — A former Tifton bank CEO has been indicted by a US Attorney for his role in a bank fraud scheme.
Gary Patton Hall, Jr., 49 of Tifton, was indicted by a grand jury on six counts of bank fraud and one count of major fraud against the United States.
US Attorney Michael J. Moore’s office made the announcement that Hall is being charged for scheming to hide underperforming and at-risk loans from the bank and the FDIC, among others.
The indictment states that Hall, former President and CEO of Tifton Banking Company from August 2005 to June 2010, was engaged in a scheme to mislead the bank and its loan committee about loans the bank made to local individuals and businesses.
Hall, according to information provided by the US Attorney’s office, allegedly hid past due loans from both the FDIC and the bank’s loan committee. This resulting in continued approval and renewal of delinquent loans and loans for which there was insufficient collateral. The resulting loan defaults resulted in millions of dollars in losses to the bank and others.
Further, the indictment alleges that Hall hid his financial or ownership interest in at least two of the transactions of which he was approving. In one instance, Hall approved a condominium loan to a borrower who then provided Hall with $50,000, the proceeds of a second, unsecured loan approved by Hall himself. When the loan became past due, Hall hid the delinquency from regulators and the bank’s board. In time, the borrower declared bankruptcy and the bank was left with over $400,000 in losses.
These and other circumstances eventually led to the bank’s default, with the Georgia Department of Banking and Finance closing Tifton Banking Company in November of 2010. When it collapsed it had an unpaid debt of $3.8 million the bank owed the Treasury Department as part of the Troubled Asset Relief Program.