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.


Tennessee's Infrastructure Needs Stand At $38.8 Billion

Tennessee needs at least $38.8 billion of public infrastructure improvements during the five-year period of 2012-2017 according to a new report by the Tennessee Advisory Commission on Intergovernmental Relations (TACIR). The need for public infrastructure improvements, as reported by state and local officials, is up $1.3 billion (3.5%) compared with the year before.   ... (click for more)

Latest Hamilton County Jail Booking Report - And Mug Shots

Here is the latest jail booking report from Hamilton County: ANGLE, NIKIA MARIE 3125 BENNETT RD EAST RIDGE, 37421 23 Hamilton County THEFT OF PROPERTY ASHLEY, LAURA ANN 480 CEDAR STREET APT 11 DUNLAP, 37327 36 Red Bank POSSESSION OF DRUG PARAPHERNALIA BROGDON, KEVIN LEON 1504 JOHN ROSS ROAD EAST RIDGE, 37412 24 East Ridge FILING FALSE ... (click for more)

Tom Dugan Was A Good Man

Tom was my boss for most of my 36 years at Carta.  At the ceremony where I was awarded my 30-year service award, Tom said, "Don disagrees with 85% of my decisions, but I wish I had 80 more employees just like him." This kind of indicates our relationship. When I asked him to help with my plans for a reunion for the group of Veterans that I served with in Vietnam, he quickly ... (click for more)

Roy Exum: A Veterinarian’s Horse Sense

I suspect you’ve heard by now that a doctor in New York City, who volunteers with “Doctors Without Borders,” just got back from the African nation of Guinea on October 17 – last Friday – and on Thursday tested positive for the deadly Ebola virus. Luckily, he came in actual contact with only a few people but he reportedly rode a subway, took a taxi, went on a three-mile run and ... (click for more)

Freeman-Led Owls Whip Cleveland, 30-14, To Win 5-AAA Title

Junior Rashun Freeman's stunning versatility stole the show Friday night. Freeman caught a touchdown pass, returned a punt for a second score and had one of three Ooltewah interceptions as the fourth-ranked Owls whipped Cleveland, 30-14, to win the District 5-AAA championship in front of a near-capacity crowd at James N. Monroe Stadium. “I practice hard and that shows ... (click for more)

Daoust Dashes For 251 Yards As Rhea Defeats East Hamilton, 42-14

Zach Daoust gained 251 yards and scored one of Rhea County’s six rushing touchdowns and the Golden Eagles pulled away with a strong fourth quarter to defeat East Hamilton’s Hurricanes, 42-14, in a non-district football game at East Hamilton High. The Hurricanes fell to 2-7 overall while losing for the fifth time in six games. East Hamilton concludes its season at Bradley Central ... (click for more)