Former Henry Co. bank executive sentenced for bank fraud
A former Henry County bank executive has been sentenced to a year and one day in federal prison for bank fraud.
According to U.S. Attorney for West Tennessee Michael Dunavant, Robert Daniel Newcomb, Jr., was vice president/branch manager at the Paris branch of First Bank when bank customer James Curtis Hobbs began buying, refurbishing and selling tractors on behalf of Newcomb.
In 2014, Hobbs bought and sold a tractor on behalf of Newcomb, but before Hobbs could give Newcomb his $7,400 dollar profit from the sale, Hobbs’ wife spent the money.
Newcomb then fraudulently renewed and increased Hobbs’ First Bank loan by $7,400 and Newcomb used the funds to pay off the loan on the tractor, which was then defaulted at a loss to First Bank for over $118,000 dollars.
On Tuesday, a federal judge sentenced Newcomb to twelve months and one day in federal prison. He was also ordered to serve two years supervised release and pay restitution of nearly $111,000 dollars.