Authorities: Former banker pleads guilty in deception
Federal prosecutors say a former executive of a now-defunct Franklin-based bank has pleaded guilty to lying to federal regulators.
The office of Acting U.S. Attorney Jack Smith said 73-year-old Lamar Cox of Nashville pleaded guilty to causing Tennessee Commerce Bank to make a false statement to the Federal Deposit Insurance Corporation (FDIC). Cox was the bank’s chief operating officer at the time.
The federal prosecutor’s office said in its press release that Cox wanted to hide the amount of money the bank lost on the bundled sale of $4 million in foreclosed properties.
TCB was shut down by federal regulators in in January of 2012 because of its failing financial condition.
Authorities say Cox faces up to 30 years in prison at an August sentencing hearing.