Bank VP Gets 3.5 Years For Fraud

So they pick on one little bank in Georgia after all of the big banks ADMIT fraud and just pay the cashier to go free? Is this really justice?

 The former vice president of a Georgia bank has been sentenced to three and a half years in federal prison for using his position to profit off of foreclosed homes in the wake of the housing crisis.

“Bank fraud is a critical problem that has hit Georgia especially hard,” said Acting United States Attorney John A. Horn.

William R. Beamon was convicted by a federal jury in December of five counts of bank fraud, for which he will serve three years and six months in federal prison and forfeit property he took control of while perpetrating the fraud at Appalachian Community Bank in Ellijay, Georgia      http://www.justice.gov/usao-ndga/pr/appalachian-community-bank-vice-president-sentenced-federal-prison-bank-fraud

MT Supreme Court Upholds $6 million fraud verdict against US Bank

In a much anticipated opinion, the Montana Supreme Court upheld the $6 million dollar jury verdict

for fraud against US Bank. Highlights from the opinion include:

' ¶17 During the course of litigation after remand, the District Court learned that the sworn statements made by U.S. Bank to the court, about documents accurately communicating to McCulley the terms of the 18-month loan, and on which the court  had relied in granting summary judgment, were inaccurate. Specifically, the court learned that the May 26 “letter” the Bank indicated had been sent to McCulley did not exist; the “term sheet” that Feurt had attested contained the terms of the loan did not exist; and affidavits submitted by the Bank indicating that it had never represented to McCulley that she would obtain a 30-year mortgage were untrue. 

and

¶ 56, 331 Mont. 231,130 P.3d 634. “[T]he price for dishonesty must be made unbearable to thwart the inevitable temptation that zealous advocacy inspires.”  Richardson, ¶ 56 (citation and internal quotation omitted).

and

"However, the Bank instead attempted to litigate by ambush, which the court rightly prohibited.

and

(i)        Indifference to or Reckless Disregard for the Safety of Others

¶47 The second factor in assessing reprehensibility is whether the Bank exhibited indifference or reckless disregard for the health and safety of McCulley. The Bank knew McCulley may well lose her home when it switched the terms of her loan and thus knew its conduct could cause serious emotional distress to McCulley. McCulley worked in good faith to negotiate a change in loan terms, and the Bank agreed, only to renege when McCulley attempted to honor the agreement. 

Andy Patten and Patricia Peterman of PPB & G of Billings Montana represented Mcculley in her civil bank case. For the full opinion see here mt opinion HERE

Mcculley is currently serving a one year sentence for allegedly impersonating a civil servant while investigating the fraud. Her conviction is on appeal in the Ninth Circuit. Lenore Albert, of Hunting ton Beach CA, who represents Mcculley in her criminal appeal, is hopeful the wrongful conviction will be overturned.