Loan Officer Shows Favoritism

A bank vice president and loan officer purchased a home from one of the bank’s construction borrowers for less than half of its market value. He then proceeded to falsify construction reports on other properties under development by the borrower, allowing the borrower to draw down loan proceeds when no construction progress was actually being made. Subsequently, the loan went into default and the bank foreclosed on the undeveloped properties.

The loan officer is also alleged to have solicited unqualified and rather naïve friends and relatives and approved loans for them to purchase and develop properties in the same area. He is alleged to have skimmed consulting fees from these other, unsophisticated borrowers.
InsuranceSwingle Collins