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.


Latest Hamilton County Jail Booking Report

Here is the latest jail booking report from Hamilton County: AARON, DARREL DEON 211 APPLING STREET CHATTANOOGA, 37406 35 Chattanooga LICENSE, EXPIRED DRIVER LICENSE DRIVING LEFT OF CENTER LINE FINANCIAL RESPONSIBILITY POSSESSION OF CONTROLLED SUBSTANCE ATKINSON, JAMAAL NATHANIEL 737 TALLEY RD CHATTANOOGA, 37411 23 Chattanooga DOMESTIC ASSAULT ... (click for more)

Red Bank Citizens Urged To Attend Meeting On Flood Risk Maps

A public meeting will be held on Monday, April 13, from 4-7 p.m. with the Federal Emergency Management Agency (FEMA) at the DRC building, 1250 Market St. “I can’t convey how important it is for the residents of Red Bank to go,” said City Manager Randall Smith. This will be an opportunity for residents and property owners to review the new preliminary flood risk maps, as well as ... (click for more)

Tennessee Deserves Better Health Reform - And Response

Tennessee needs health care reform. Expanding Medicaid under the Affordable Care Act, or "Obamacare," was not the best solution for Tennesseans. That is why the vast majority of Tennessee legislators never publicly supported the plan defeated in a special legislative session in February.   It is important to distinguish health care from health insurance. As one physician ... (click for more)

Roy Exum: Happy Birthday, Mr. Berg

This past Monday we should have closed the Post Office, let kids out of school, and lowered our flags to half-mast. March 2 is the anniversary of Moe Berg’s birthday and the legendary Casey Stengel once said Moe was “the strangest man ever to play baseball.” Moe played major league baseball for 16 years, finishing with the Boston Red Sox in 1939 and a lifetime batting average of ... (click for more)

Double Overtime Thriller: Central Boys Going To State

For all the folks who came to Chattanooga State Tuesday night for the Class AA sectional battle between Livingston Academy and Region 3-AA champ Central, they got their money's worth and more. And they even got some free basketball to boot. Needing a couple of overtimes, the Purple Pounders will be heading to Murfreesboro and MTSU's Murphy Center next week for the TSSAA State ... (click for more)

Blackman Blazes A Trail To State By Bashing Bradley, 55-35

(Story will be updated) MUFREESBORO, Tenn. – The Class AAA state champions are still alive and well. Blackman raced past outmanned Bradley Central, 55-35, Tuesday night in a Class AAA sectional victory that blazed a path right to the boys state tournament at nearby Middle Tennessee State University starting on March 11. The Blaze (24-5) will be making their fourth ... (click for more)