David Saks: REAL ESTATE DEVELOPER CHARGED WITH FRAUD

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

REAL ESTATE DEVELOPER CHARGED WITH FRAUD

Real Estate Developer Charged with Fraud

Reginald R. Harper, 58, Hammond, Louisiana, and Troy A. Fouquet, 43, Covington, Louisiana, were charged in a one count bill of information for conspiracy to commit bank fraud.

According to court documents, in approximately 2004, Harper, the former president and chief executive officer of First Community Bank, Hammond, Louisiana, loaned in excess of $2 million to Fouquet, a real estate developer, or one of a number of companies Fouquet owned. The purpose of the loans were to purchase parcels of real estate; develop them into subdivisions; and built houses on them, eventually to be bought by prospective home buyers who would obtain permanent mortgages to finance the purchase. The permanent mortgages would also include monies to pay back Fouquet who, in turn, would pay back the original loans made by Harper on behalf of First Community Bank.

 

According to the bill of information, however, beginning in 2005, it became difficult for Harper and Fouquet to identify qualified home buyers to obtain permanent mortgages. As a result, Harper and Fouquet developed various methods to avoid reporting the delinquency on the loans made by Harper, on behalf of First Community Bank, to Fouquet and/or his companies.

One method used by the defendants, according to the bill of information, included Harper making "loans" to the prospective home buyers to make it appear to the permanent mortgage lender they were trying to qualify that the prospective home buyer had more funds on hand than they actually did.

Another method employed by the defendants, according to court documents, was to use nominee loans or straw borrowers to sign up for new First Community Bank loans, authorized by Harper, the proceeds of which were then utilized to pay off the original loans made to Fouquet and/or his companies.

Finally, another method used by the defendants to avoid reporting the delinquency of these loans, according to the Bill of Information, included Fouquet presenting Harper with insufficient checks (i.e. a check not backed up with sufficient funds) and Harper accepting them, crediting the loan payment in First Community Bank's books and records, despite knowing the check was insufficient.

The fraudulent methods employed by the defendants, as set forth in court documents, led to a false call report (a report of First Community Bank's financial health), which impacted an application undertaken by the bank to receive funds from the Troubled Asset Relief Program (TARP), a program administered by the United States. Ultimately, according to the bill of information, when the wrongdoing employed by the defendants was uncovered, First Community Bank suffered severe financial losses.

If Harper and Fouquet are convicted of the one count charged against each of them, the maximum penalty they face is up to five years' imprisonment, a $250,000 fine, and a $100 special assessment, respectively.

U.S. Attorney Jim Letten announced the charges.

U.S. Attorney Letten reiterated that a bill of information is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.

"Rather than recognize losses on bad loans, Harper and Fouquet concocted a scheme to create and use sham loans to hide delinquent, non-performing loans," said Christy Romero, Deputy Special Inspector General for SIGTARP. "Instead of living up to his fiduciary duties as the president and CEO of the bank, Harper concealed the true status of the loans from the bank, regulators, and the U.S. Department of the Treasury in the bank's TARP application. During the financial crisis, many bank executives faced losses on non-performing loans, but did not choose to commit bank fraud."

The case is being investigated by agents from the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and agents from the Federal Bureau of Investigation.

The case is being prosecuted by Assistant U.S. Attorney Matt Chester.

Courtesy Mortgage Fraud Blog




David Saks



Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


 

  Real Estate Crimes

 

Click "HERE" For Today's Question

 

 

TheListen Now!

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis

WUMR

 

Support
America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

Comment balloon 0 commentsDavid Saks • February 22 2012 07:38AM

Comments

This blog does not allow anonymous comments