Henry County banker faces prison time

The former bank president and real estate developer allegedly received nearly $7 million in fraudulent loan proceeds, according to the U.S. Attorney’s Office.

U.S. Attorney Sally Quillian Yates said Conner and his co-conspirators “tricked” the bank into making loans for Conner’s benefit, running the bank into the ground and “victimizing honest customers.”

Conner allegedly hid from the bank’s board and loan committee that he was receiving proceeds of loans that ultimately went bad. According to prosecutors, the bank approved “multiple multimillion dollar” loans to borrowers, unaware the borrowers were buying property Conner or his co-conspirators owned.

Federal prosecutors allege documents were falsified and terms of the loans were misrepresented to the board and loan committee. At least 10 other banks in Georgia and Florida also bought pieces of the loans, known as loan participations, unaware of any fraud.

Conner and co-conspirators also misled bank regulators and unsuccessfully solicited assistance of the federal government under the Troubled Asset Relief Program, prosecutors said.

The perjury charge stems from false statements Conner made in his personal bankruptcy case. Conner swore under oath he was broke, but prosecutors said he hid more than $500,000 in cash in off-shore bank accounts and $4 million in real estate investments.

Conner, Clayton A. Coe, the bank’s former senior commercial loan officer, and Robert E. Maloney, the bank’s former attorney, were indicted earlier this year on charges related to the alleged loan scheme.

Cases against Coe and Maloney are pending.

Ed Garland, one of Conner’s attorneys, said after the hearing his client is cooperating with the federal government and takes full responsibility for his actions.