7 former First National Bank officers sentenced for loan fraud - WTOC-TV: Savannah, Beaufort, SC, News, Weather & Sports

7 former First National Bank officers sentenced for loan fraud scheme

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SAVANNAH, GA (WTOC) -

Seven former officers of First National Bank of Savannah were sentenced during three days of hearings last week before United States District Court Chief Judge Lisa Godbey Wood.

Each of the defendants had earlier pled guilty to their role in a massive loan-fraud scheme against First National Bank and other federally insured banks.

Heys Edward McMath III, 59, the former President and CEO, was sentenced to serve 42 months in prison, to pay $9,749,264.83 in restitution, and to serve three years of supervised release after his release from prison;

Stephen Michael Little, 65, the former Executive Vice President and CFO, was sentenced to serve 20 months in prison, to pay $72,571.25 in restitution, to pay a fine of $100,000, and to serve three years of supervised release after his release from prison;

Robert Wilson Dailey, 52, the former City President and Senior Lending Officer, was sentenced to serve 38 months in prison, to pay $158,518.13 in restitution, and to serve three years of supervised release after his release from prison;

Jay Patrick Gardner, 63, the former Vice President of Credit Administration, was sentenced to serve 2 years of probation and to pay $14,800 in restitution.

Isaac Jefferson Mulling, 55, a former Senior Vice President, was sentenced to serve 22 months in prison, to pay $157,543.60 in restitution, and to serve three years of supervised release after his release from prison.

Alan Robert Fleming, 38, the former City President of the Tybee Island branch, was sentenced to serve 38 months in prison, to pay $3,891,870.28 in restitution, and to serve three years of supervised release after his release from prison;

Jeffrey Allen Farrell, 45, the former City President of the Richmond Hill branch, was sentenced to serve 10 months in prison, to pay $57,771.25 in restitution, and to serve three years of supervised release after his release from prison.

The seven bank officers worked to hide from to hide from the bank, members of the bank's board of directors, and from federal regulators millions of dollars in non-performing loans, as the bank's financial condition worsened, according to the U.S. Attorney's Office.  

United States Attorney Edward J. Tarver said in a statement: "These Defendants chose to hand out millions of dollars in fraudulent loans and to falsify numerous bank records, all in an effort to gamble with other people's money and to hide the true condition of the bank that they ran."

Money was unlawfully loaned to unqualified nominees to make interest and other payments on other non-performing loans. 

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