twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.


Bank Chief Defrauded His Own Bank

Mark Conner, Clayton Coe arrested in connection with failure of FirstCity

March 23, 2011

By MortgageDaily.com staff


The former chief of a failed Georgia bank was apprehended this week as he returned from the West Indies. Along with another bank executive, he is accused of committing mortgage fraud on multi-million dollar commercial real estate loans.

On Friday, March 20, 2009, federal and state banking regulators marched into five federally insured banks and seized the institutions.

One of those banks was FirstCity Bank, which was closed by the Georgia Department of Banking and Finance and handed over to the Federal Deposit Insurance Corp. as receiver.

The Stockbridge, Ga., bank was in such bad shape that the FDIC couldn't find another bank to take it over.

The institution was liquidated at an estimated cost of $100 million to the Deposit Insurance Fund. Given that the bank's assets were less than $300 million -- losses were proportionately huge.

Turns out that FirstCity's losses were the result of an elaborate scam perpetrated by the bank's former president, Mark A. Conner, and Clayton A. Coe, who was a senior loan officer at FirstCity, according to a press release from the Department of Justice.

An indictment by a federal grand jury was unsealed Monday against the two defendants. Charges include bank fraud and conspiracy to commit bank fraud.

On Sunday, which was the two-year anniversary of FirstCity's failure, Conner was arrested and taken into custody by federal agents at Miami International Airport upon his arrival from the Turks and Caicos Islands in the West Indies. He made his initial appearance on Monday before a federal magistrate judge -- who denied bail and determined that Conner was a flight risk.

Conner's formal detention hearing is scheduled for tomorrow.

An initial appearance for Coe has not yet been scheduled.

The government said that Conner held a variety of senior positions at the bank between 2004 and 2009 including vice chairman, president, acting chairman and acting chief executive officer.

Coe was a vice president and served as FirstCity's senior commercial loan officer. His bonus compensation was directly tied to origination volume.

Along with other unnamed conspirators, the pair allegedly hatched a plan to deceive the bank's loan committee with fraudulent files and, in the process, generate $5 million in unlawful proceeds. The board of directors was also duped.

Borrowers were approved to purchase properties personally owned by Connor and Coe, but the bank was kept in the dark about who the sellers on the properties really were. Some of the commercial mortgages were multi-million dollar.

Bank regulators were also allegedly deceived.

And it wasn't just FirstCity that was investing in the loans; at least 10 other banks were conned into making loans.

To make matters worse, FirstCity applied for assistance from the Troubled Asset Relief Program -- bringing the alleged crime within the jurisdiction of the TARP Special Inspector General Neil Barofsky.

Conner faces 10 years to life in prison and a fine of as much as $10 million.

Coe could be sentenced up to 30 years and fined as much as $1 million.

next story

back to current headlines


Bank news

Commercial Mortgage News | CRE Lender Directory | CRE Statistics
Stories about commercial lending on multifamily, office, retail and industrial properties.


Mortgage Fraud News | Fraud Statistics | Fraud Index | Fraud Blog
Mortgage broker, originator and banker criminal cases. Real estate flipping and appraisal fraud. Mortgage fraud prevention, studies and analysis.



Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.


The Mortgage Graveyard
Failed, closed and a c q u i r e d mortgage-related entities.



Logout forgot
password?

Mortgage Fraud Statistics
Government and private data on volume of mortgage fraud activity.



Mortgage Fraud Index
Dollar and index amount by quarter and state.



Mortgage Fraud Litigation
Lawsuits and settlements invoving mortgage fraud by a lender insider. From 2007 through first-quarter 2013



Mortgage Fraud News
News stories about fraud committed against home lenders.



Mortgage Fraud Blog
Actions in mortgage fraud criminal and civil cases.



local mortgage fraud


mortgage fraud links



SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders