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.



Copies Of Remaining Chattanooga Photo Books Available At Zarzour's Restaurant

Remaining copies of the Chattanooga Photo books are available at Zarzours Restaurant on Rossville Avenue off Main Street. It is near Fire Hall #1. They include the Remarkable Stokes Collection, Railroads In and Around Chattanooga, and Paul Hiener's Historic Chattanooga.  All were published by Chattanoogan.com.  and printed by College Press at Collegedale. The ... (click for more)

Latest Hamilton County Jail Booking Report

Here is the latest jail booking report from Hamilton County: ARTERBURN, ALEXIS DANE  6783 SAWTOOTH DRIVE OOLTEWAH, 37363  Age at Arrest: 20 years old Arresting Agency: Hamilton County VIOLATION OF PROBATION (ESCAPE) VIOLATION OF PROBATION (SIMPLE DOMESTIC ASSAULT) --- AUSTIN, KEITH LEE  6422 STALLION LANE HARRISON, 37341  Age at Arrest: 27 ... (click for more)

Signal Mountain Should Be Problem Solvers Around The City

Re: Roy Exum’s “Stay, Signal Mountain, Stay”  Well this article is something to think about. I think the split could go either way, and Signal Mountain schools would still flourish, as they have done for the past several years. What I'm worried about is why Signal Mountain has not yet had the guts to go be problem solvers at Howard, or Tyner, or Central. Why do ... (click for more)

Roy Exum: The School Board Bullies

When the good people of Signal Mountain join with their loved ones to give thanks for many, many blessings on this hallowed Thursday, you can bet the Hamilton County Department of Education will be on nary a list. For the past year a diligent advisory committee has studied the feasibility of forming its own school district and exactly one week prior to Thanksgiving, the misguided ... (click for more)

LSU Hammers Vols 30-10 In Hoke's Debut As Interim Coach

KNOXVILLE, Tenn. – Butch Jones is long gone. But Tennessee’s on-field results Saturday were about the same as they’ve been since Georgia humiliated the Vols 41-0 on Sept. 30. Nationally ranked LSU’s defense effectively stymied Tennessee’s offense most of the game and the Tigers got two rushing touchdowns in a 30-10 SEC victory before an announced crowd of 96,888 at Neyland ... (click for more)

UTC Finishes Tough Season With 10-3 Win Over ETSU

A youthful Tom Arth knew he was facing the biggest coaching challenge of his life back in the spring when he was hired as the next head man for the Chattanooga Mocs football team, but he didn’t know exactly how challenging it would be. It hasn’t been the season that Arth had planned as things didn’t always go as he had hoped, but the best news is that the season finished on a ... (click for more)