Ex-banker indicted in loan fraud
Posted on Wednesday, September 12, 2007
Frank G. Wallace, a former president of First State Bank in Parkin, has been indicted by a federal grand jury on charges of making false entries in an attempt to deceive bank examiners.
Wallace hasn’t been employed at the bank, now called Evolve Bank & Trust, for several years.
The indictment alleges that in 1998 and 2000, Wallace, aided by others, sought to remove certain delinquent loans from the bank’s books — and to conceal the delinquent status of other loans — to throw off a team of examiners from the Federal Deposit Insurance Corp. who had scheduled a visit.
Among other things, the indictment accuses Wallace of creating fictitious loans to cover delinquent loans on which the bank in Cross County had taken no action; increasing the balance on one of several delinquent loans held by one customer to make his other delinquent loans appear current; and failing to reduce the amount of a customer’s loan after the bank repossessed the customer’s vehicle and sold it, and then manipulating other records to make the loan appear to be paid off.
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