Lamar Cox, 73, of Franklin, Tenn., is staring down a federal indictment for cooking the books at the now-dead Tennessee Commerce Bank (TCB). The former Chief Operating Officer and Board of Directors member was charged by felony Information yesterday with causing the bank to file a false statement with the Federal Deposit Insurance Corporation — a move meant to mask its financial rot from federal overseers.
According to the U.S. Attorney’s Office, Cox engineered a scheme to hide the full extent of a $710,000 loss tied to the sale of $4 million in foreclosed properties. As federal examiners loomed, Cox allegedly delayed reporting the true loss, instead fabricating a “posting error” that slashed the reported loss to just $270,000 in the third quarter of 2009. That deliberate sleight of hand allowed TCB to understate its net loss by $440,000 in its official Call Report to the FDIC.
The deception didn’t just mislead regulators — it misled investors, shareholders, and the public about the bank’s true health. Federal investigators say Cox’s manipulation was premeditated, designed to paint a false picture of stability just weeks before a federal review. The ruse bought time, but not salvation. TCB collapsed under its own weight and was shuttered by federal regulators on January 27, 2012.
Cox now faces the full wrath of federal sentencing guidelines. If convicted, he could spend up to 30 years in prison and be fined as much as $1,000,000. The court will also determine the amount of restitution he may owe. No plea has been entered, and under U.S. law, Cox is presumed innocent until proven guilty.
The investigation was a joint operation by some of Washington’s sharpest financial crime units: the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the FDIC Office of Inspector General-Office of Investigations, and the FBI. The case is being prosecuted by Assistant U.S. Attorney Thomas J. Jaworski, who has handled multiple high-profile financial fraud cases in the Eastern District.
Once a pillar in Middle Tennessee’s banking scene, TCB’s fall was swift — and, prosecutors argue, accelerated by executive deception. Cox’s case adds another chapter to the long post-recession saga of bank insiders playing fast and loose with the truth. The trial will test whether regulators can hold the architects of financial illusions accountable — long after the smoke clears.
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Key Facts
- State: Tennessee
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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