Ex-Banker Pleads Guilty to Bank Fraud, Other Charges

Ex-Banker, Presumed Dead, Pleads Guilty to Multiple Bank Fraud Charges

bank fraudA former banker from Georgia, who disappeared for two years and was declared dead before being discovered, pleaded guilty to 17 counts of bank fraud, securities fraud, and wire fraud, on Thursday, June 5th.

Price was indicted by the Southern District of Georgia and the Eastern District of New York after he successfully defraud dozens of investors and a bank. Now that he has pleaded guilty to the federal charges, Price faces up to 30 years in prison, plus millions of dollars in fines, and millions of dollars in restitution to his victims.

His wire fraud, securities fraud, and bank fraud charges stemmed from a 2010 investment, in which a group run by Price invested approximately $10 million in a failing bank – the Montgomery Trust Bank & Trust (MB&T). Price was then made director of the bank and put in charge of investing the company’s money. Price told the bank that he would invest the institution’s capital in US Treasury securities.  Instead of investigating the money, Price embezzled $21 million over an 18 month period, losing much of it in risky equity securities options.

Further investigation into these charges uncovered another incident of embezzling from June 2009 to June 2012. Price defrauded these individuals after they invested millions in two investment firms that Price managed. He raised about $51 million that he unsuccessfully invested in equity securities and options. After losing most of the money, Price tried to cover up the losses by posting fake account statements, listing made-up assets and false investment returns.

Price disappeared in 2012 after sending a rambling letter to his family and associates, which investigators believed to be a question. He also sent numerous “suicide letters” to associates. After a search, a Florida judge declared Price dead in 2013; however, the FBI continued their search for Price, as they did not believe he was dead. After a lengthy search, Price was found in Brunswick, GA during a routine traffic stop on December 31st, 2013.

“I genuinely and humbly accept responsibility for my unlawful behavior and criminal conduct. I betrayed and lost the confidence of my fellow man,” he told the judge, his voice cracking. His sentencing hearing for the wire fraud, securities fraud, and bank fraud charges has not been scheduled yet.

Federal Wire Fraud Charges and Defense

Our federal criminal defense lawyers handle wire fraud cases involving:

  • Fraudulent insurance claims
  • Bond issuances and investment schemes
  • Falsifying loan applications
  • Check fraud schemes
  • Bribes or kickbacks
  • False advertising or misrepresentation in sales transactions

Transferring money to an offshore or international bank may be legitimate and legal transactions; however, transferring money to an offshore or international bank account to hide a crime can lead to serious federal criminal charges.

The Strom Law Firm Defends Wire Fraud and Other Federal Charges

The Strom Law Firm, LLC has the experience that you need to defend your wire fraud, securities fraud, or bank fraud charges. Founded by former U.S. Attorney and assistant solicitor, Pete Strom, our experienced criminal  defense attorneys include a former public defender, and a former Assistant Attorney General and Richland County Assistant Solicitor, as well as a tax lawyer familiar with IRS investigations.  Our experience and familiarity with prosecutorial techniques provide the basis for experienced and effective legal representation. We will fight hard to have your charges reduced, or even dismissed. Contact us today for a free consultation to discuss the facts of your case as well the most effective way to proceed with your case. 803.252.4800

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