A former executive at First NBC Bank has admitted to his role in a conspiracy to defraud the New Orleans bank prior to its April 2017 failure.
The U.S. Attorney’s Office for the Eastern District of Louisiana said in a press release Tuesday that Robert Calloway, who had been an executive vice president, pleaded guilty to one count of conspiracy to commit bank fraud. He faces up to five years in prison, three years of supervised release and a fine of up to $250,000 or the greater of twice his gain or twice the loss to any victim.
Gibbs pleaded guilty in August 2020. Ryan and Burnell, along with former First NBC officer Fred Beebe and borrower Frank Adolph, are scheduled for trial in January.
The case is being investigated by the FBI; Federal Deposit Insurance Corp., the Federal Reserve and the Consumer Financial Protection Bureau.
When First NBC failed, the borrowers collectively owed $260 million.
The bank’s failure cost the FDIC’s Deposit Insurance Fund roughly $1 billion.