Hardin Co. business owner charged in $9M bank fraud conspiracy

HARDIN COUNTY, Tenn. — A Hardin County businessman has been charged with participating in a conspiracy that defrauded three banks of more than $9 million.

Charles Ray Smith was charged Monday in a nine-count indictment which includes eight counts of bank fraud and one count of conspiracy to commit bank fraud, according to a release from the U.S. Attorney’s Office.

Smith owned and operated Tennessee Material Corporation along with other businesses.

He is accused of conspiring with former Central Bank CEO Christopher Brent Jerrolds, 54, of Savannah to execute a scheme that defrauded Central Bank, Wayne County Bank and First Metro Bank of more than $9 million, according to the release.

Jerrolds pleaded guilty in May to bank fraud for his role in the conspiracy, the release states.

If convicted, Smith faces up to twenty years in federal prison on each count of bank fraud and up to five years on the conspiracy to commit bank fraud charge. He also faces a fine of up to $250,000 for each count in the indictment.

The case is being investigated by the Federal Deposit Insurance Corporation and the Federal Bureau of Investigation.