Guy Mitchell, Bank Fraud and Bribery, Georgia 2013

ATLANTA, Georgia – In a shocking turn of events, Guy Mitchell, a hotel financier, has pleaded guilty to conspiring to commit bank fraud and to pay bribes to an officer of a financial institution. The brazen crime has left many in the financial community reeling.

According to the United States Attorney, Sally Quillian Yates, Mitchell used millions of improperly obtained loan proceeds to fund a lavish lifestyle. The defendant’s actions corrupted the lending process and jeopardized the safety and soundness of Integrity Bank, which failed and was taken over by the FDIC.

The Federal Deposit Insurance Corporation Office of Inspector General is pleased to join our law enforcement colleagues in announcing Mr. Mitchell’s guilty plea. When major borrowers conspire with bank insiders to engage in fraudulent activities that contribute to institution failures, all parties must be brought to justice.

According to the charges, Mitchell borrowed more than $40 million from the now-failed Integrity Bank in 2005 and 2006, allegedly to finance his interests in various hotels around the country. One of these loans was to acquire and renovate the Casa Madrona Hotel, a luxury property overlooking the water in Sausalito, California.

During that time, Mitchell was bribing Douglas Ballard, a former loan officer at Integrity, with hundreds of thousands of dollars. Although Mitchell did use some of the money he received from Integrity for hotel purposes, he never performed any renovations on the Casa Madrona. Instead, he used loan draws to buy a private island in the Bahamas, to travel by private jet, and to pay for Miami Heat tickets, fancy jewelry, expensive cars, and a mansion in Coconut Grove.

Mitchell, 53, of Miami, Fl., could receive a maximum sentence of 5 years in prison and a fine of up to $250,000, or twice the greater of the gain or loss. Sentencing is scheduled for October 10, 2013, at 10:00 a.m. before United States District Judge Julie E. Carnes.

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