William J. Burnell, Conspiracy to Defraud, Louisiana 2023

NEW ORLEANS – In a shocking turn of events, 72-year-old William J. Burnell, a resident of Kenner, Louisiana, has pleaded guilty to conspiracy to defraud First NBC Bank. The New Orleans-based bank failed in April 2017, leaving many wondering what went wrong. According to court documents, Burnell, the Bank’s Chief Credit Officer, was responsible for the overall quality of the Bank’s lending function.

Burnell was responsible for compiling month-end reports, including lists of overdrawn borrowers and past-due loans. These reports should have accurately shown the quality of the Bank’s assets, which included loans. Misrepresentations on these reports made a true assessment of the Bank’s overall financial well-being impossible.

Burnell was also responsible for approving credit risk ratings before the Bank decided to lend to its customers. However, he conspired with the Bank’s President Ashton J. Ryan, Jr., Executive Vice President Robert B. Calloway, Senior Vice President Fred V. Beebe, and others to conceal material information and defraud the Bank.

Other people involved with the Bank, including the Bank’s board of directors, external auditors, and federal and state regulators, relied on Burnell as the Chief Credit Officer to inform them about problems with the Bank’s asset quality, including problems with loans. Nevertheless, Burnell and others concealed material information about borrower Gary Gibbs from the board, auditors, and examiners.

Burnell served as an additional approving officer for loans to borrower Warren Treme, who was Ryan’s business partner. Beebe was Treme’s loan officer. Burnell, Ryan, and Beebe made misrepresentations in Treme’s loan documents and to the board, auditors, and examiners, in ways that financially benefited Ryan.

“Today’s guilty plea once again demonstrates that the FDIC OIG and our law enforcement partners will continue to investigate those individuals, including bank directors and officers who are entrusted to manage financial institutions, but cause harm to our nation’s banking industry,” said Anand Ramlall, Special Agent in Charge, Dallas Region, Office of Inspector General for the Federal Deposit Insurance Corporation.

“Today’s plea agreement illustrates the FBI’s steadfast commitment to bringing those who commit white collar crimes to justice, like Mr. William J. Burnell,” said Douglas A. Williams, Jr., Special Agent in Charge, FBI New Orleans.

Burnell’s guilty plea sends a clear message that bank executives who commit fraud and deliberately deceive regulators will be brought to justice for their actions.

Related Federal Cases