Bank Fraud – William R. “Rusty” Beamon convicted of scheme to defraud Appalachian Community Bank

William R. Beamon, Jr., a/k/a “Rusty” Beamon, has been convicted by a federal jury of carrying out a scheme to defraud Appalachian Community Bank, in Ellijay, Ga.

“Bank fraud is a critical problem throughout the United States, but it has hit Georgia especially hard,” said United States Attorney Sally Quillian Yates.  “Georgia leads the nation in bank failures since 2008, with 88 banks failing—including Appalachian Community Bank, the bank this defendant defrauded.  These failures have significantly affected the economy, making these cases important to safeguard the nation’s financial health.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Bank fraud comes in many forms but when it comes in the form of the bank’s own vice president, it becomes all the more intolerable.  Mr. Beamon, as a banking executive, should have protected his bank and its assets from fraud but instead he saw an opportunity to enrich his own bank account.  The federal sentencing handed down to Mr. Beamon will be not only the closing note to one man’s banking career but also to the bank that he caused to fail.”

“Beamon was convicted after a jury found him guilty of using his position at TARP-applicant Appalachian Community Bank to defraud the bank in order to line his own pockets,” said Christy Romero, Special Inspector General for TARP (SIGTARP).  “Beamon’s greed and self-dealing at the expense of the bank left holes in the bank’s books that the bank tried to fill when it applied for TARP funds.  SIGTARP and our law enforcement partners will ensure that justice is served for perpetrators of fraud related to TARP.”

According to United States Attorney Yates, the charges and other information presented in court:  Beamon was Vice President of Appalachian Community Bank in Ellijay, Ga.  Due to its poor financial condition, Appalachian was forced to close on March 19, 2010, and the FDIC was appointed receiver.

Beamon was in charge of the Appalachian’s foreclosure liquidation department.  In 2009, he represented to a real estate agent that he personally owned a house in Cumming, Ga.  Beamon hired that agent to market and lease the property on his behalf.  In truth, however, the property was owned by Appalachian and was part of the bank’s foreclosure inventory.  Beamon’s real estate agent found someone to lease the property and negotiated a lease on Beamon’s behalf.  Beamon then deposited into his personal bank account more than $20,000 in rent payments and security deposits that he obtained by leasing out the bank’s property as if he were the owner.  Beamon also caused Appalachian to sell bank-owned properties to his wife and to a shell company that he owned—all at prices that were substantially below what other buyers were ready, willing, and able to pay the bank.

William R. Beamon, Jr., a/k/a “Rusty” Beamon, 54, of Atlanta, Ga., was convicted on five counts of bank fraud.  Sentencing has not yet been scheduled.