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Bank Executive’s Guilty Plea
Larry Gene Webb, 65, the former Deputy Director of the Upper Cumberland Development District (UCDD) and former Director of the Cumberland Regional Development Corporation (CRDC), pleaded guilty to one count of bank fraud, a crime that could land him 30 years in prison and a $1,000,000 fine.
The scheme, which began in 2010, involved Webb and co-defendant Wendy Askins, who was the Executive Director of UCDD, defrauding the Bank of Putnam County to secure a $731,000 loan for a UCDD program called "Living the Dream."
Webb submitted fake CRDC resolutions with the loan application stating that he and Askins were permitted to obtain a $750,000 loan for the project. However, neither UCDD nor the CRDC had authorized a loan for "Living the Dream," and a portion of the loan proceeds was used to build a luxury, personal residence for Wendy Askins.
According to the plea agreement, the bank would not have approved the loan had it known the project was not sponsored by the UCDD and CRDC.
Webb is scheduled to be sentenced on November 24, 2015, and could face a maximum penalty of 30 years in prison and a $1,000,000 fine. Meanwhile, Wendy Askins, the remaining defendant, is currently scheduled for trial on September 22, 2015, in the U.S. District Court in Nashville.
The case was investigated by the U.S. Department of Commerce-Office of Inspector General, the FBI, the U.S. Health and Human Services- Office of Inspector General, the Internal Revenue Service-Criminal Investigation, and the Housing and Urban Development-Office of Inspector General.
The United States is represented by Assistant U.S. Attorneys Stephanie N. Toussaint, William L. Deneke, and Byron M. Jones.
Key Facts
- State: Tennessee
- Category: Public Corruption|White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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