Former Henry County Bank Executive Sentenced to Prison for Bank Fraud
March 14, 2019 / Source: FDICOIG
PRESS RELEASE
FOR IMMEDIATE RELEASE
Wednesday, March 13, 2019
Former Henry County Bank Executive Sentenced to Prison for Bank Fraud
Jackson, TN – A former bank executive has been sentenced to twelve months and one day in federal prison for bank fraud. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, from May 16, 2005 through October 7, 2015, Robert Daniel Newcomb, Jr., was employed in Paris, Tennessee, as a vice president/branch manager at the FDIC-insured bank known as FirstBank, Bartlett, Tennessee. James Curtis Hobbs was a long-time bank customer of Newcomb’s. Hobbs was in the business of buying, refurbishing and selling tractors through “Southern Associates, Inc.” Newcomb was conducting a similar business on his own in addition to his banking duties.
In 2012, Hobbs began selling tractors on behalf of Newcomb. Hobbs would recondition and sell the tractors, withhold his expenses and commissions from the sales and give Newcomb payment for the tractors.
In 2014, Hobbs purchased and sold a tractor on behalf of Newcomb. Before Hobbs could give Newcomb his $7,400 profit from the sale, Hobbs’ wife spent the money. Newcomb then fraudulently renewed and increased Hobbs’ FirstBank loan by $7,400 in the name “Southern Associates, Inc.” Newcomb used the funds to pay off the loan on the tractor, which was then defaulted at a loss to FirstBank in the amount of $118,390.45.
On March 12, 2019, Chief United States District Court Judge S. Thomas Anderson sentenced Newcomb to twelve months and one day imprisonment. He was also ordered to serve two years supervised release and to pay restitution of $110,990.45.
U.S. Attorney D. Michael Dunavant said, “The financial fraud committed by this defendant is disturbing. The abuse of his position of trust and authority as a bank vice president for his own personal gain had a significant negative impact on the shareholders, employees and customers of FirstBank. The U.S. Attorney’s Office places a high priority on protecting the security and integrity of transactions, deposits and assets of financial institutions, and this case demonstrates that commitment.”
“The FDIC Office of Inspector General is pleased to join the U.S. Attorney’s Office in bringing Mr. Newcomb to justice. We are especially concerned when trusted insiders abuse their positions to harm the financial institutions that employ them. We will continue our efforts to investigate such abuses in FDIC-insured financial institutions throughout the country,” said Laurie L. Younger, Special Agent-in-Charge, FDIC – Office of the Inspector General, Dallas Region.
This case was investigated by the Federal Deposit Insurance Corporation – Office of the Inspector General.
Assistant U.S. Attorney Matt Wilson prosecuted this case on the government’s behalf.
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