REAL ESTATE DEVELOPER PLEADS GUILTY TO CONSPIRACY TO COMMIT BANK FRAUD
TROY A. FOUQUET, age 43, a resident of Covington, Louisiana, pled guilty today to one count of conspiracy to commit bank fraud before U. S. District Judge Nannette Jolievette Brown, announced U. S. Attorney Jim Letten.
According to court documents, in approximately 2004, Reginald R. Harper, the former President and Chief Executive Officer of First Community Bank, 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 pay off the original loans made by Harper on behalf of First Community Bank and also include monies to pay FOUQUET.
According to the court documents, however, beginning in 2005, it became difficult for Harper and FOUQUET to identify qualified home buyers to obtain permanent mortgages. As a result, Harper, who has also been charged in this case, 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 court documents, 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 court documents, 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 court documents, when the wrongdoing employed by the defendants was uncovered, First Community Bank suffered severe financial losses.
FOUQUET faces a maximum penalty of up to five years imprisonment, a $250,000 fine, and a $100 special assessment, respectively. Sentencing has been scheduled for June 7th, 2012 at 10:00 a.m.
The case was 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.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims or have knowledge of waste, abuse, or allegations of mismanagement involving disaster relief operations, contact the National Center for Disaster Fraud toll free at: (866) 720-5721. You can also fax information to: (225) 334-4707 or e-mail it to: email@example.com