Former First NBC Bank CEO indicted on federal bank fraud charges

Kenny Kuhn
July 10, 2020 - 10:48 pm
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A grand jury indicts local banker and founding CEO of First NBC Bank, Ashton Ryan, on federal bank fraud charges.

The grand jury handed up the indictment Friday. Ryan is accused of falsifying bank records to hide bank loans that borrowers could not pay back unless they took out other high interest loans with the bank to pay off the previous loans.  This led to some borrowers owing tens of millions of dollars.

Ryan faces 46 federal counts of conspiracy to commit bank fraud and bank fraud.  Federal prosecutors say he used high-risk lending tactics to funnel money to himself through personal real estate projects.

This all comes after a federal probe into the 2017 collapse of First NBC Bank.  Ryan founded the bank back in 2006.

Federal prosecutors from the U.S. Attorneys Office from Eastern District of Louisiana say during that time, Ryan and three other men “conspired to defraud First NBC Bank by disguising the true financial status of certain borrowers and their troubled loans, concealing the true financial condition of the Bank from the Board, auditors, and examiners.”

The federal indictment says when federal regulators closed First NBC Bank in April 2017, the defrauded bank loans cost the Federal Deposit Insurance Corporation $1 billion.

“Along with our Partners, the FBI has dedicated significant time and resources toward investigating the failure of First NBC Bank, which resulted in nearly a billion dollar loss to the FDIC,” said FBI New Orleans Special Angent in Charge, Bryan Vornbran. “This should be a deterrent for others interested in participating in fraudulent schemes that affect our financial system.”

 

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