New ORLEANS – Kenneth Charity, the 54-year-old New Orleans businessman, has been charged by the United States Attorney’s Office with conspiracy to defraud First NBC Bank. The bank, which failed in 2017, was the recipient of over $18 million in fraudulent loans.
According to the charges, Charity and others conspired to misrepresent his financial status and loan purposes, deliberately disguising true liabilities and overstating assets from February 2007 through April 2017. Bank President A is accused of aiding this scheme, issuing new loans to pay off old ones while falsely portraying Charity’s entities as profitable.
The fraudulent activities also included lying about the purpose of approved loans; for instance, proceeds meant for business were used instead for personal expenses and to cover overdrafts, including payment on a beignet shop patio that was never built.
First Assistant United States Attorney Michael Simpson emphasized that the charges are merely accusations and require proof beyond a reasonable doubt. The investigation is being conducted by the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation, Office of Inspector General, and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General.
Assistant U.S. Attorneys Sharan E. Lieberman, Matthew R. Payne, Nicholas D. Moses, and J. Ryan McLaren are tasked with the prosecution of this case, which is a clear example of white-collar crime impacting the financial sector.
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Key Facts
- State: Louisiana
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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