Federal Jury Convicts Sullivan County Residents Tommy Blair and Tina Rogers on Federal Bank Fraud Charges

GREENEVILLE, TN—Following a four-day trial in U.S. District Court, Greeneville, Tenn, on August 15, 2011, a jury convicted Tommy Blair of Bluff City, Tenn., and Tina Rogers of Bristol, Tenn., of federal bank fraud charges.

Sentencing is set for January 30, 2012, at 9:00 a.m., in U.S. District Court in Greeneville. Blair and Rogers each face up to 30 years in prison, up to a $1 million fine, up to five years on supervised release, a $300 special mandatory assessment, and restitution as ordered by the court.

The evidence presented at trial established that Tommy Blair and Tina Rogers schemed with Sam Clark of Piney Flats, Tenn., to defraud TruPoint Bank in a business loan transaction involving a sales price which was falsely inflated by $800,000, non-existent earnest money of $465,000, sham seller-held financing of $210,000, a $125,000 cash kickback from the buyer to the seller, and a side agreement by the buyer to pay the seller’s capital gains tax which resulted from the deal. Clark, who was charged in the same indictment, pleaded guilty to bank fraud conspiracy in May 2011 and testified on behalf of the United States. None of the defendants disclosed any of the foregoing fraudulent transactions to TruPoint Bank, which incurred a loss exceeding $2.5 million as a result.

William C. Killian, U.S. Attorney for the Eastern District of Tennessee, stated, “Our office will continue to vigorously prosecute bank fraud. The integrity of the loan process and public confidence in our banking system are vital to our nation’s economic recovery. Criminal actions and schemes such as this undermine the legitimate loan process. This case illustrates another method to steal money from a bank. Thanks to the good work of the FBI and AUSA Helen Smith, they were not successful.”

The Federal Bureau of Investigation (FBI) conducted the investigation which led to indictment and subsequent conviction of Tommy Blair, Sam Clark, and Tina Rogers. Assistant U.S. Attorney (AUSA) Helen Smith represented the United States.