Feds Studying Suspect Paperwork Tied to One Bank

by George Waldon  on Monday, Mar. 25, 2013 12:00 am  

That line item has taken a noticeable dive since the OCC began delving deeper into One Bank’s business. (See below.)

One Bank & Trust Premises & Fixed Assets*

Value
December 31, 2008 $15,125,000
December 31, 2009 $14,677,000
December 31, 2010 $15,041,000
December 31, 2011 $14,030,000
March 31, 2012 $13,854,000
June 30, 2012 $13,750,000
Sept. 30, 2012 $10,689,000
December 31, 2012 $9,608,000

*Includes capitalized leases.

Looking at the Books

According to the complaint, Hunter Stuart wrongly received $94,527 from One Bank to cover the down payment on the house. He allegedly received those bank funds at the direction of his father and Tom Whitehead, who was the bank’s chief financial officer.

The complaint alleges that Hunter Stuart did not have sufficient assets to make the down payment and the loan application misrepresented his net worth and income.

Hunter Stuart received $94,527 through two cashier checks issued by One Bank, the lawsuit claims. The checks “were improperly accounted for on the bank’s books as being bank-related expenditures and did not reflect their true purpose,” according to the complaint.

One Bank also provided a $360,000 loan to finance the balance of the purchase. The lawsuit alleges that additional unspecified bank funds were used to pay for renovation work on the house.

The outlay of these unspecified funds was hidden on the bank’s general ledger as “Bank Building Under Construction” and later “Leasehold Improvements,” according to the complaint.

According to the complaint, Scooter Stuart approved the invoices related to the remodeling work at his son’s house, and Whitehead processed the payments and posted the entries to the bank’s fixed asset system.

“The property renovation costs were paid from funds illegally diverted from [One Bank] between mid-2009 to mid-2011,” the lawsuit alleges.

The city has no permit record for construction work at either branch location during that time.

“The misappropriation and concealment of bank funds was done at the direction, and with the participation and knowledge of L. Stuart along with the assistance of Whitehead, and [Hunter Stuart] knew or should have reasonably known these payments were not authorized payments by the bank,” the suit alleges.

One Bank is seeking possession of the residence or a lien on the property to secure its financial claim, followed by a court-ordered sale of the home.

(Also see One Bank Rebuilds Its Leadership.)

 

 

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