First NBC Bank Exec Ryan Guilty of $1 Billion Fraud

NEW ORLEANS – Ashton J. Ryan, Jr., the former President and CEO of First NBC Bank, has been found guilty on all forty-six (46) counts related to a massive fraud scheme that led to the bank’s catastrophic failure, U.S. Attorney Duane A. Evans announced today. The federal jury delivered the verdict on February 9, 2023, after a lengthy trial. In contrast, former First NBC Bank senior vice president Fred V. Beebe was found not guilty on all seven counts he faced.

Court documents reveal that from 2006 through April 2017, Ryan and co-conspirators systematically defrauded First NBC Bank through a web of deceptive schemes. As the bank’s chief executive for the majority of its existence, Ryan allegedly concealed the true financial status of borrowers and their increasingly troubled loans. This deception extended to the Board of Directors, external auditors, and federal examiners, painting a false picture of the bank’s health.

The scheme involved deliberately misleading inquiries about problematic loans. When questioned by Board members, auditors, or examiners, Ryan and others allegedly provided false statements, omitting critical information about borrowers’ inability to repay their debts without continually receiving new loans. This cycle of debt fueled the growth of non-performing loans and ultimately precipitated the bank’s collapse. The failure of First NBC Bank resulted in losses of slightly under $1 billion to the Federal Deposit Insurance Corporation’s deposit insurance fund – a staggering cost borne by taxpayers.

Ryan faces a maximum sentence of thirty years in prison for each of the charges, which include Count 1, conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 1344 and 1349. He is also convicted of multiple instances of bank fraud (Counts 2 through 37), in violation of Title 18, United States Code, Section 1344, and making false entries in bank records (Counts 38 through 46), in violation of Title 18, United States Code, Section 1005. Additionally, he could be fined up to $1,000,000 per count – or twice the gain from the fraud, or twice the loss to victims – and faces up to five years of supervised release, plus a $100 mandatory special assessment fee per count.

The investigation was a collaborative effort led by the FBI New Orleans, the FDIC Office of Inspector General in Dallas, and the Federal Reserve Board of Governors’ Office of Inspector General in Miami. Agents and analysts meticulously reviewed millions of pages of emails, account records, and loan documents to expose the fraudulent activity. “Mr. Ryan’s willingness to ignore and flaunt all sound financial practices left the American taxpayers to foot the 1-billion-dollar bill which remained following First NBC’s collapse,” stated Douglas A. Williams, Jr., Special Agent in Charge of FBI New Orleans.

U.S. Attorney Evans emphasized the gravity of the case. “This was a theft of epic proportions that grew from within that ultimately harmed the New Orleans economy,” he said. “This case shows the dedication of this office, along with our law enforcement partners to prosecuting crime wherever it happens. Be it on the streets of our neighborhoods, or in board rooms downtown, this office will dedicate the time and resources to investigate and bring culprits to justice.” The conviction, officials hope, will offer some measure of justice to the over 500 people who lost their jobs and the countless stockholders who suffered financial losses due to the bank’s failure. The FDIC OIG confirmed their commitment to holding accountable bank executives who jeopardize the nation’s financial system.

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