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Sun Sep 8, 2019, 09:59 PM

Mississippi developer alleged to be major player in loans that brought down First NBC Bank

The investigations into the collapse of First NBC Bank have unearthed a new series of suspicious, multimillion-dollar loans that regulators allege were fraudulently obtained from former bank executives, this time involving a Mississippi real estate developer who faces a separate lawsuit alleging he duped a former business partner's widow, leaving her on the hook for millions of dollars of his bad debts.

Regulators from the Federal Deposit Insurance Corp. said in a notice filed last week that Robert Brad Calloway, a former loan officer and chief credit officer at First NBC Bank, submitted false or misleading documentation in order to make a series of loans to Diamondhead, Mississippi-based businessman Gary R. Gibbs that totaled $123 million at the time of the New Orleans bank's collapse.

The filing says that Calloway, along with First NBC'S former CEO, Ashton Ryan, got the loans to Gibbs approved when they knew he didn't have the necessary collateral, and that they also knew the money was being used by Gibbs to cover payments on existing loans instead of for Gibbs' business expenses, as was represented to the bank's loan committee.

The allegations are the latest in the long-running saga of First NBC's collapse and subsequent federal investigations, and they add Gibbs to a growing list of borrowers whose loans were allegedly made by Ryan and other executives without heeding bank regulations and the bank's own policies aimed at preventing losses or fraud.

Read more: https://www.nola.com/news/business/article_cd688096-d010-11e9-9c56-cfc33e22a5bc.html

It appears that the DOJ will have plenty of people to criminally charge for the bank failure.

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