Bank manager pleads guilty in fraud case

The branch manager of FirstBank in Shelbyville pleaded guilty in federal court in Chattanooga Wednesday to a charge of making a false entry in bank records while he was employed with another local financial institution.

Ronald Frank Bell of Shelbyville waived indictment and arraignment and pleaded guilty to making a false entry in bank records in violation of Title 18 United States Code Section 1005.

He appeared before Magistrate Judge Susan K. Lee in U.S. District Court for the Eastern District of Tennessee in Chattanooga.

The maximum penalty for the offense is a fine of $1 million and 30 years imprisonment, according to the federal plea agreement.

Sentencing for Bell is set for Jan. 21, 2010.

The charge against Bell stems from a joint investigation by Detective Brian Farris of the Bedford County Sheriff's Department and FBI Special Agent Richard Poff.

According to the plea agreement, Bell "is pleading guilty because the defendant is in fact guilty."

The plea agreement stated that Bell was the loan officer for Regions Bank in Shelbyville and that he made a $3 million dollar loan to Charles Coffey on May 15, 2005.

On or about June 2, 2006, the loan was up for renewal and according to federal documents, "Knowing he did not have Coffey's permission, the defendant (Bell) directed a subordinate to prepare a loan extension agreement and directed her to sign Coffey's name."

Bell thereby intended to deceive the bank, the plea agreement reads.

Sheriff Randall Boyce said that his department, "in conjunction with the FBI, is committed to investigating and prosecuting white collar crimes to the fullest extent of the law.

"This crime is made worse by the fact that it involves a manager of a financial institution and by the sheer dollar amount involved," Boyce said.

Farris said he was made aware of the case by Boyce and asked to investigate, but was unable to elaborate on the details further.

Bell was named city president for FirstBank in Shelbyville in August 2008, replacing the late Scott McDonald.

He was previously vice president/business banking relationship manager at Regions Bank in Shelbyville and had worked in the financial industry for more than 37 years, according to a press release from FirstBank last year.

Officials at FirstBank in Shelbyville had no comment about the matter when reached on Wednesday. Coffey could not be reached for comment.

The plea agreement also states that Bell agrees to consent to an order of "Prohibition From Further Participation" with the Federal Deposit Insurance Corporation (FDIC), meaning that he will not be employed again in the banking industry.

If Bell violates the terms of the plea agreement, or violates any court order, local, state or federal law pending the resolution of the case, federal prosecutors will have the right to void any or all parts of the agreement and may prosecute Bell "for any and all federal crimes that the defendant committed related to this case, including any charges that were dismissed."

Bell was represented in this case by attorney Robert Peters of Winchester.