Former loan officer, two others charged with defrauding River City Bank | Local News
A former bank loan officer and two others were charged with federal fraud on Wednesday in U.S. District Court in Rome.
Michael Craig Brewster, Edmond Cash and LaDonna Barton have been charged with a scheme to defraud Brewster’s former employer, River City Bank.
“Bank insiders who abuse their position to illegally help themselves and their friends should heed this,” said Acting US District Attorney for the Northern District of Georgia Kurt R. Erskine. “We will work diligently with our law enforcement partners to root out criminal insiders and hold them accountable.”
According to the indictment and other information presented to the court:
Brewster, 46, of Huntsville, Alabama; Cash, 79, from Rome; and Barton, 63, of Menlo, are charged with conspiracy to bank fraud, bank fraud and misrepresenting in a loan application.
The plot began with a fraudulent loan Barton obtained through the bank, prosecutors said.
The loan request, with the help of Cash, was routed through Brewster, who was then the bank’s loan officer.
Using his position at the bank, Brewster had the loan application approved despite the loan application containing false information.
Barton claimed in her loan application that she was looking to buy a property; instead, the money was pocketed by Barton and Cash. Cash then used some of the money to pay for other loan payments and expenses for a land use planning company.
“The Treasury has invested TARP funds in banks to bring stability, not to finance fraudulent bank loans,” said Christy Goldsmith Romero, special inspector general of the Troubled Asset Relief Program. “Today’s indictment is another example of liability for a banker alleged to have committed fraud.”