NEW ORLEANS – In a staggering admission of guilt, Warren G. Treme, age 55, from Metairie, Louisiana, has pleaded guilty to conspiracy to defraud First NBC Bank, the New Orleans-based institution that spectacularly failed in April 2017.
According to court documents, Treme’s relationship with First NBC Bank, starting around 2008, was riddled with financial chicanery. Co-owned with Ashton J. Ryan, then President of the bank, Treme’s loans should have been scrutinized due to their intertwined business interests. However, Ryan and William J. Burnell, Chief Credit Officer, allowed Treme to borrow more money despite his inadequate cash flow to cover existing debts.
Ryan and Burnell are no strangers to First NBC Bank’s scandal; they’ve previously been implicated in the fraudulent scheme that led to the bank’s collapse. They have also been charged with hiding their fraud from the bank’s board, auditors, and examiners. Treme is the third person linked to this criminal enterprise through his association with Ryan.
Court records reveal a cunning plan by Ryan and Burnell to embezzle $400,000 from Treme’s business partners, supposed for paying off a loan. Instead, they funneled $300,000 into Treme’s pockets, which he squandered on personal luxuries. When confronted at a board meeting, the pair deceitfully claimed the money was used to pay down the debt.
“The FBI and our law enforcement partners have dedicated significant time and resources toward investigating the failure of FNBC,” said Bryan Vorndran, FBI New Orleans Special Agent in Charge. “Mr. Treme’s guilty plea should be a deterrent to those who would attempt to defraud our nation’s banking system.” The statement was echoed by Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection.
Treme has been charged with one count of conspiracy to commit bank fraud, carrying a maximum penalty of thirty years in prison and a fine of $1,000,000 or twice the gain from his crime.
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Key Facts
- State: Louisiana
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption|White Collar Crime
- Source: Official Source ↗
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