Metairie developer Warren G. Treme has pleaded guilty to conspiracy to defraud the First NBC Bank, a one-time banking powerhouse which failed in April 2017.
Treme maintained a conflictual relationship with First NBC Bank officers who granted loans to him.
Treme co-owned several entities with Ashton J. Ryan, President of First NBC Bank. Because of this conflict of interest, Ryan should not have been involved with Treme’s loans. However, Ryan exercised authority over Treme’s loans with William J. Burnell, the Bank’s Chief Credit Officer.
Treme lacked sufficient income and cash flow from his businesses to pay his loans and personal expenses. Ryan and Burnell disguised Treme’s true financial condition by making new loans to pay Treme’s existing loans.
Court documents further describe a scheme by Ryan and Burnell to take $400,000 from Treme’s business partners as part of a settlement. Rather than using the $400,000 to pay down an outstanding loan debt owed by Treme and his business partners, Ryan and Burnell gave $300,000 to Treme, who spent the money on gambling, a trip to the Caribbean, and expenses related to a real estate development company co-owned with Ryan.
“The FBI and our law enforcement partners have dedicated significant time and resources toward investigating the failure of FNBC, which resulted in nearly a billion dollar loss to the FDIC. Individuals like Mr. Treme who engage in fraudulent schemes that impact the security of financial institutions are being held accountable. His guilty plea today should be a deterrent to others who would attempt to defraud our nation's banking system,” said Bryan Vorndran, FBI New Orleans Special Agent in Charge.
Treme has pleaded guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 1344 and 1349. The maximum penalties that may be imposed upon conviction are thirty years in prison; a fine of $1,000,000, or the greater of twice the gain to Treme or twice the loss to any victim; up to five years of supervised release.
