Head Of BB&T's Chattanooga Commercial Banking Operations To Plead Guilty To Making Fraudulent Loans

Thursday, May 23, 2013

The head of BB&T's Chattanooga commercial banking operations has been charged by federal authorities with making fraudulent loans.

Tracy Brown is set to plead guilty to bank fraud on June 4.

Authorities said Brown "appropriated the identities of three customers and took out fraudulent loans in their names. In October 2012, a customer of BB&T, D.M., went to the Ooltewah branch of BB&T regarding a loan statement that he received in the mail. D.M. advised back in May 2012, he had been contacted by Brown in regard to a loan which Brown said had been opened for a different "D.

M." but had his address in error.

"D.M. was told by Brown that this loan did not have his Social Security number, that he would get one statement, and that it would be corrected on the next statement. D.M. received five statements and faxed a copy of all five to Brown to be corrected. It was determined that two separate loans were made in the Eastern District of Tennessee in D .M.' s name one on May 1, 2012, for $50,000, as charged in the information, and one on August 30, 2012, for $45,000.

"Brown was the loan officer on both loans. Both signatures on the loans were not consistent with D.M.'s signature. After visually observing the signatures and loan application, D.M. confirmed that the signatures were not his. Further inquiries into loans made by Brown yielded three other loans that were questionable using two different names of other customers of the bank.

"Two loans were made by Brown in the name of R.M., one dated February 25, 2010, in the amount of $100,000 and one dated September 3, 2010, in the amount of $230,000. One loan was made by Brown in the name of S. L. dated December 14, 2011, in the amount of $50,000.

"Brown deposited some of the money from the fraudulent loans into a personal account belonging to him and his wife, and used the rest of the money to pay off some of the previous fraudulent loans he made in the customer's names."

Officials said the total exposure to BB&T was $475,000. BB&T prevented $124,000 from leaving the bank. BB&T was able to recover $30,638.90. BB&T incurred a loss of $320,361.10 as a result of the scheme charged, it was stated.

Brown faces up to 30 years in federal prison.

His attorney is Dee Hobbs.

At the time he was hired in 2006, Louis Moore, BB&T Tennessee president, said, “Tracy Brown is exactly the right person to be BB&T’s Chattanooga city executive. He cares deeply about this community and he is a true banking professional.”

Brown, who was 40 at the time, had previously served as a BB&T business services officer in Cleveland, Tn. Prior to that, he was employed at AmSouth Bank for six-and-a-half years.


Comments On The Passing Of Scotty Probasco

Senator Lamar Alexander released the following statement on the passing of Scotty Probasco: "Scotty Probasco was Chattanooga's cheerleader, a vigorous and generous advocate for so many good causes. I am especially grateful for his service on our state's governing board for higher education. He was a close friend. Honey and I will miss him greatly." The Tennessee ... (click for more)

Chattanooga Police Investigate 1 Robbery, 7 Burglaries April 11-15

The Chattanooga Police Department investigated one robbery and seven burglaries in the period April 11-15. The robbery was at: 300 CHERRY ST 4/12/15 0:01 120 120 ROBBERY 3 37402-   The burglaries were at:   709 Old Dallas Road 4/11/15 17:30 220 220 BURGLARY/BREAKING AND ENTERING 3 37405- 2506 CHAMBERLAIN AVE 4/11/15 13:40 220 220 BURGLARY/BREAKING ... (click for more)

Proud Of Hometown Boy Turned Global Leader, Bob Corker

Time Magazine has it right.  Not only is Chattanooga’s own U.S. Senator Bob Corker one of the “100 Most Influential People in the World,” but he is probably now the most prominent leader in the history of our city.   At a time of extreme frustration with Washington and Congress in general, Bob continues to rise above the division and rancor to build consensus and solve ... (click for more)

Roy Exum: Great Work, Ol’ Pro!

Years ago I was lucky enough to be the seatmate of Scotty Probasco on an airplane bound for somewhere and he taught me a word that has helped me be a much better person than I ever thought I could. We were already swell friends, since he’d watched me grow up at First Presbyterian Church every Sunday with his kids, and he liked some of the stuff I tried to write back then. So ... (click for more)

CAK Beats Soddy-Daisy, 6-2, For Choo Choo Classic Softball Title

Christian Academy of Knoxville finished its run through the rain-shortened Choo Choo Classic with a 6-2 victory over Soddy-Daisy at The Summitt. Three of the Lady Warriors’ runs in the third – and last – inning came on Lady Trojans errors as the 70-minute time limit on the game expired to cap a marathon day in the tournament that was cut from two to one day by heavy rain earlier ... (click for more)

Geno Phillips Wins Third Chickamauga Chase 15K Title

There was almost an event for everyone Saturday morning in the 47 th running of the Chickamauga Chase. As has been the case from the beginning, there was the 15K main event that attracted 373 finishers while another 392 took part in the 5K.   And yet another 126 decided to stay off the road and participate in the eight-mile trail run. And while weather in recent days ... (click for more)