Northport Farm Credit Manager Charged with Fraud

BIRMINGHAM—Federal prosecutors today charged a Tuscaloosa man in connection with a nearly $2 million lending fraud scheme, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Patrick J. Maley.

The four-count information filed in U.S. District Court charges GREGORY T. SMITH, 36, with defrauding First South Farm Credit in Northport of about $1,894,043 between 2007 and 2010. An agreement with the government for Smith to plead guilty to the charges also was filed today.

Smith was employed as branch manager of First South, a financial institution regulated by the Farm Credit Association, during the time he conducted the fraud, according to the information and plea agreement. He created bogus mortgage documents, forged signatures of legitimate First South customers on loan documents, falsified loan title policies, used the names of existing Farm Credit customers to create false new loans, and manufactured additional false notes to existing loan files, all in order to falsely disburse nearly $2 million in loan proceeds and to avoid detection by auditors, according to the court documents.

“Smith, with the assistance of counsel, wisely decided to cooperate with the investigation and has signed a plea agreement with the United States evidencing his guilt and accepting responsibility for his crimes,” Vance said.

No date has been set for Smith to enter his guilty plea.

Upon conviction, Smith faces a maximum sentence of 120 years in prison, fines of $3,788,086, mandatory restitution, and forfeiture of $1,894,043.

This case is being investigated by the FBI. Assistant U.S. Attorney Pat Meadows is prosecuting the case.