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.reversefunding.com

subscribe to free Mortgage Daily email newsletter

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.



P R E S S   R E L E A S E

FOR IMMEDIATE RELEASE:

Feb. 15, 2012


Former Bank President and Real Estate Developer Charged with Conspiracy to Commit Bank Fraud

NEW ORLEANSóREGINALD R. HARPER, age 58, a resident of Hammond, Louisiana, and TROY A. FOUQUET, age 43, a resident of Covington, Louisiana, were charged today in a one count bill of information for conspiracy to commit bank fraud, announced U.S. Attorney Jim Letten.

According to court documents, in approximately 2004, HARPER, the former president and chief executive officer of First Community Bank, a bank located in Hammond, Louisiana, loaned in excess of $2 million to FOUQUET, a real estate developer, or one of a number of companies FOUQUET owned. The purpose of the loans were to purchase parcels of real estate; develop them into subdivisions; and built houses on them, eventually to be bought by prospective home buyers who would obtain permanent mortgages to finance the purchase. The permanent mortgages would also include monies to pay back FOUQUET who, in turn, would pay back the original loans made by HARPER on behalf of First Community Bank.

According to the bill of information, however, beginning in 2005, it became difficult for HARPER and FOUQUET to identify qualified home buyers to obtain permanent mortgages. As a result, HARPER and FOUQUET developed various methods to avoid reporting the delinquency on the loans made by HARPER, on behalf of First Community Bank, to FOUQUET and/or his companies. One method used by the defendants, according to the bill of information, included HARPER making "loans" to the prospective home buyers to make it appear to the permanent mortgage lender they were trying to qualify that the prospective home buyer had more funds on hand than they actually did. Another method employed by the defendants, according to court documents, was to use "nominee" loans or "straw" borrowers to sign up for new First Community Bank loans, authorized by HARPER, the proceeds of which were then utilized to pay off the original loans made to FOUQUET and/or his companies. Finally, another method used by the defendants to avoid reporting the delinquency of these loans, according to the Bill of Information, included FOUQUET presenting HARPER with insufficient checks (i.e. a check not backed up with sufficient funds) and HARPER accepting them, crediting the loan payment in First Community Bank's books and records, despite knowing the check was insufficient.

The fraudulent methods employed by the defendants, as set forth in court documents, led to a false call report (a report of First Community Bank's financial health), which impacted an application undertaken by the bank to receive funds from the Troubled Asset Relief Program (TARP), a program administered by the United States. Ultimately, according to the bill of information, when the wrongdoing employed by the defendants was uncovered, First Community Bank suffered severe financial losses.

"Rather than recognize losses on bad loans, Harper and Fouquet concocted a scheme to create and use sham loans to hide delinquent, non-performing loans," said Christy Romero, Deputy Special Inspector General for SIGTARP. "Instead of living up to his fiduciary duties as the president and CEO of the bank, Harper concealed the true status of the loans from the bank, regulators, and the U.S. Department of the Treasury in the bank's TARP application. During the financial crisis, many bank executives faced losses on non-performing loans, but did not choose to commit bank fraud."

If HARPER and FOUQUET are convicted of the one count charged against each of them, the maximum penalty they face is up to five years' imprisonment, a $250,000 fine, and a $100 special assessment, respectively.

U.S. Attorney Letten reiterated that a bill of information is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.

The case is being investigated by agents from the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and agents from the Federal Bureau of Investigation.

The case is being prosecuted by Assistant U.S. Attorney Matt Chester.


Source: United States Attorney's Office for the Eastern District of Louisiana

Local Mortgage Fraud news
News about local mortgage fraud.


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

free mortgage 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

sales blog

secondary marketing

social media

servicing news

subprime news

wholesale lenders

wireless mortgage news