Bell receives probation in loan case

CHATTANOOGA -- Ronald Bell, a former Shelbyville bank branch manager, was sentenced to three years probation by a federal judge on Monday.

Bell pleaded guilty last October to charges of making a false entry in bank records while he was employed at Regions Bank in Shelbyville, waiving indictment and arraignment.

Following a lengthy hearing in U.S. District Court in Chattanooga, Judge Harry S. Mattice Jr. told Bell before passing sentence that being a convicted federal felon was punishment enough of the former banker.

Part of Bell's plea agreement states he 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.

At the time that Bell pleaded guilty, he was manager of the FirstBank branch in Shelbyville.

Mattice stated that the matter before him was a "highly unusual fraud case" and "hard to understand."

Bell, who was the loan officer for Regions Bank in Shelbyville, made a $3 million dollar loan to Charles Coffey on May 15, 2005, according to court records.

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."

A major point of the sentencing hearing involved the subject of over $138,000 in interest paid by Coffey to Regions on the loan, which is currently the topic of litigation between the bank and Coffey.

Mattice ruled that federal sentencing guidelines could not permit him to include the amount of money lost by Coffey through interest.

Coffey could not comment on the case involving Bell due to the fact that he is currently involved in federal mediation with Regions over the matter.

Bell apologized to Coffey, said he took full responsibility for his actions, and was "very humbled" by his current situation.

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

A more detailed report on the case will be in the Sunday edition of the Times-Gazette.