Larry Malone Sentenced for Bank Fraud, Bainbridge GA, 2014

Larry Malone, a 59-year-old former Chief Lending Officer from Bainbridge, Georgia, has been sentenced to 48 months imprisonment for his role in a bank fraud scheme that spanned several years.

According to the United States Attorney for the Middle District of Georgia, Michael J. Moore, Malone was sentenced on December 16, 2014, by the Honorable W. Louis Sands, Senior United States District Judge, in Albany, Georgia. In addition to his prison term, Malone was ordered to pay restitution in the amount of $25,540,896 to the Southwest Georgia Farm Credit and its insurers.

Malone was charged with conspiracy to commit bank fraud and with accepting bribes and kickbacks. He pleaded guilty to the charges on September 22, 2011. The case was consolidated in the Middle District of Georgia, and Judge Sands handed down the sentence.

As the Chief Lending Officer at Southwest Georgia Farm Credit, Malone made fraudulent loans to various borrowers in the Middle District of Georgia and the Northern District of Florida, totaling $25,540,896. In return, he received approximately $900,000 in bribes and kickbacks from the borrowers. The scheme lasted from approximately 2001 to 2008.

The case was investigated by the Federal Bureau of Investigation and the United States Secret Service. Assistant United States Attorney Jim Crane prosecuted the case. United States Attorney Michael J. Moore stated, “After the financial crisis we experienced, no one can legitimately question the importance of pursuing people like Mr. Malone, who commit bank fraud.”

Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office, who can be reached at (478/621-2603). The sentencing of Larry Malone serves as a reminder of the importance of holding individuals accountable for their actions, particularly in cases of financial fraud.

The sentence handed down to Malone reflects the seriousness of the crime and the impact it had on the financial institutions and individuals involved. As the United States Attorney’s Office continues to pursue cases of financial fraud, it is clear that those who engage in such activities will be held accountable for their actions.

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