Related Federal Cases
Defendant’s Greed Leads to Downfall of Appalachian Community Bank
GAINESVILLE, Ga. – William R. Beamon, Jr., a/k/a ‘Rusty’ Beamon, has been convicted by a federal jury of carrying out a scheme to defraud Appalachian Community Bank, in Ellijay, Ga.
According to United States Attorney Sally Quillian Yates, Beamon was Vice President of Appalachian Community Bank in Ellijay, Ga. Due to its poor financial condition, Appalachian was forced to close on March 19, 2010, and the FDIC was appointed receiver. Beamon was in charge of the Appalachian’s foreclosure liquidation department.
In 2009, Beamon represented to a real estate agent that he personally owned a house in Cumming, Ga. He hired that agent to market and lease the property on his behalf. However, the property was owned by Appalachian and was part of the bank’s foreclosure inventory. Beamon’s real estate agent found someone to lease the property and negotiated a lease on Beamon’s behalf. Beamon then deposited into his personal bank account more than $20,000 in rent payments and security deposits that he obtained by leasing out the bank’s property as if he were the owner.
Beamon also caused Appalachian to sell bank-owned properties to his wife and to a shell company that he owned—all at prices that were substantially below what other buyers were ready, willing, and able to pay the bank. ‘Bank fraud is a critical problem throughout the United States, but it has hit Georgia especially hard,’ said United States Attorney Sally Quillian Yates. ‘Georgia leads the nation in bank failures since 2008, with 88 banks failing—including Appalachian Community Bank, the bank this defendant defrauded.’
William R. Beamon, Jr., 54, of Atlanta, Ga., was convicted on five counts of bank fraud. Sentencing has not yet been scheduled. This case is being investigated by the FDIC Office of Inspector General; the Department of Treasury, Special Inspector General Troubled Asset Relief Program; and the Federal Bureau of Investigation.
Assistant United States Attorneys J. Russell Phillips and Douglas W. Gilfillan are prosecuting the case. The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General is pleased to join our law enforcement colleagues in announcing the conviction of Mr. Beamon for his role in a fraudulent scheme that caused harm to Appalachian Community Bank, said Fred W. Gibson, Principal Deputy Inspector General, Federal Deposit Insurance Corporation.
The Federal Bureau of Investigation’s J. Britt Johnson, Special Agent in Charge, Atlanta Field Office, stated: ‘Bank fraud comes in many forms but when it comes in the form of the bank’s own vice president, it becomes all the more intolerable. Mr. Beamon, as a banking executive, should have protected his bank and its assets from fraud but instead he saw an opportunity to enrich his own bank account. The federal sentencing handed down to Mr. Beamon will be not only the closing note to one man’s banking career but also to the bank that he caused to fail.’
Key Facts
- State: Georgia
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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