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Former FirstCity Bank President Receives 12-Year Sentence

The former president of FirstCity Bank of Georgia, Mark A. Conner, was sentenced to 12 years in federal prison for bank fraud conspiracy and perjury, SIGTARP and U.S. Attorney for the Northern District of Georgia Sally Quillian Yates jointly announced Friday in a release.

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Conner, 46, was charged for his role in a multi-million dollar conspiracy to defraud FirstCity Bank and for hiding and lying about assets in his personal bankruptcy case.

The now defunct FirstCity Bank was seized by state and federal regulators March 2009.

According to the release, Conner held a variety of top positions at FirstCity Bank between 2004 and 2009. During that time, Conner and his co-conspirators defrauded FirstCity Bank's loan committee and Board of Directors into approving multi-million dollar commercial loans to borrowers who were actually purchasing property owned by Conner and others involved.

Conner and the co-conspirators got at least 10 banks to invest in the fraudulent loans based on misrepresentations. Through the scheme, Conner made almost $7 million in proceeds.

To make FirstCity Bank look better, Conner and co-conspirators also made loans to buyers to purchase the bank's foreclosures without requiring a downpayment from the buyers.

In his Chapter 7 bankruptcy petition, Connor also stated he had a little over $3,000 in cash and financial accounts and essentially no interests in real estate when in fact he controlled off-shore accounts holding over $545,000. In addition, Conner had made some $4 million in loans from his off-shore accounts.

Conner pleaded guilty to the charges on October 21, 2011 and has been in federal custody since his arrest on March 20, 2011.

In addition to 12 years in prison, Conner was ordered to pay 19.5 million in restitution to the FDIC and victim banks. Conner also agreed to forfeit $7 million.

""Our state, which leads the nation in bank failures, is still recovering from a banking crisis of epic proportions. These failures have a ripple effect in every workplace and household in the State. This sentence should serve as a warning that regardless of your position or the complexity of your scheme, bank officers and directors who place FDIC-insured funds at risk through fraud and self-dealing will be brought to justice,"" said Yates.

Other defendants for the case include the failed bank's former top loan officer, Clayton A. Coe and the former top lawyer, Robert E. Maloney, Jr.

Coe, who pleaded guilty in June, is awaiting sentencing. Maloney is scheduled for trial in January 2013.

About Author: Esther Cho

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