The State Journal ran a story today entitled “Guilty Pleas Expected in Development Scam” announcing that a former United Bank Vice President and loan officer who we sued as a part of our Walnut Springs Mountain Reserve civil fraud case, “R. Leon Cooper” has agreed to plead guilty to federal crimes as part of a plea deal.
The conduct supporting the plea has to do with fraud which occurred in the development of the “Lamplighter” subdivision in Lewisburg, WV. The story also noted that:
As part of the guilty pleas, both Carter and Cooper agreed to cooperate with the U.S. Attorney’s office on further investigations. Both Carter and Cooper also will forfeit nearly $2 million in valued property.
Carter is scheduled to enter his guilty plea Jan. 6 in Beckley. Cooper’s plea has been scheduled for Jan. 13 in Beckley.
Cooper was the former Fayette Planning Commission president involved in the failed River Ridge development in Fayetteville.
That development crumbled when sewer plans for the development were prematurely approved so loans Cooper facilitated through United Bank could be approved for property purchasers, according to lawsuits filed concerning that development.
Cooper also has been named in a civil lawsuit filed in the failed Walnut Springs development in Monroe County.
The Monroe County lawsuit is pending.
There also was a story in the Charleston Gazette yesterday that United Bank paid $15,000,000.00 in fraud settlements in 2009 alone. And we wonder why the economy collapsed…. The Gazette also ran a story on Friday on the Cooper fraud. The banks have been running absolutely wild. We are still sorting out how many innocent U.S. citizens were harmed due to bank fraud in the mid to late 2000’s. It is a big deal for these two West Virginia publications to start reporting on United Bank’s dirty laundry. For those of you who don’t know, United Bank basically runs the state of West Virginia. It is the “state’s largest bank” and many, many people and institutions in West Virginia are afraid of it. But once the cat’s out of the bag, it’s out. I suspect we will read more soon.
Ok, here’s more: A Virginia businessman, Osama M. El-Atari, 31, pled guilty to bank fraud totaling $53,000,000 in fraudulent loans. Guess who else was involved? That’s right, United Bank. A United Bank Vice President and loan officer (same general position as Cooper), Sissaye Gezachew, 32, was arrested and pled guilty to bank fraud for his involvement with El-Atari. See Washington Post article and FBI press release. Banks do not exactly advertise these incidents, or even explain them, to their customers or shareholders. In fact, they don’t even let their mortgagees who have been victims of fraud know about the fraud. Rather, they pretend it never happened and demand their money. Then they foreclose and threaten to garnish wages. Of course you would still be safer with United Bank than dealing with United Bank of Africa.