Former Henry Co. bank executive sentenced in fraud investigation
JACKSON, Tenn. — A former Henry County bank executive has been sentenced to a year and one day in prison after fraudulently renewing a loan for a bank customer.
According to the U.S. Attorney’s Office, Robert Newcomb Jr. was the vice president and bank manager at FirstBank in Paris. In a news release Wednesday, the U.S. Attorney’s Office says Newcomb had a business similar to a long-time customer who bought, refurbished and sold tractors.
The release says the customer began selling tractors for Newcomb in 2012. The customer would refurbish and sell the tractors for Newcomb, and then keep his expenses and commissions from the sale and give Newcomb payment for the tractors, according to the release.
In 2014, the release says the customer purchased and sold a tractor for Newcomb, but the customer’s wife spent the $7,400 profit from the sale before he could pay Newcomb. The release says Newcomb fraudulently renewed and increased the customer’s loan through FirstBank for $7,400 in the name of the customer’s business.
The release says Newcomb used the funds to pay off a loan on the tractor, which defaulted to FirstBank for $118,390.
Newcomb was sentenced Tuesday to serve one year and one day in prison along with two years of supervised release in addition to paying $110,990 in restitution.