Bank Executives Charged with Fraud Relating to the Collapse of $1 Billion Atlanta Bank

A federal judge in Atlanta unsealed an indictment today charging two former Atlanta-based Integrity Bank executives, Douglas Ballard, 40, and Joseph Todd Foster, 42, both of Atlanta, and hotel developer Guy Mitchell, 50, of Coral Gables, Fla., with various acts of conspiracy, bribery, bank fraud and/or securities fraud relating to over $80 million in loans that Mitchell obtained from Integrity Bank. Mitchell, Ballard and Foster were indicted by a federal grand jury on April 14, 2010, and Mitchell is expected to make his initial appearance before U.S. Magistrate Judge Gerrilyn Brill today. Arraignments are expected to be scheduled shortly in federal court in Atlanta for the three defendants. U.S. Attorney Sally Quillian Yates said, "We have charged two of Integrity Bank's former officers and its largest borrower with various acts of fraud, bribery, and insider trading. These officers of Integrity Bank sure weren't living up to the bank's name. After passing out $80 million to the developer like it was monopoly money, both officers dumped their Integrity stock before the failed loans came to light. While the developer was living the good life, even buying a private island with Integrity's money, and the bank's senior loan officer was making huge commissions and taking payoffs from the developer, the bank was dying a slow death. The defendants were going to leave the bank's shareholders and the FDIC holding the bag, but now they are being held accountable." Posted in: Internal Fraud