Answer: The FDIC, among others. On August 11, 2011, The Federal Deposit Insurance Corporation (FDIC) signed a notice initiating the proceedings to determine whether Former Vice President of Appalachian Community Bank in Ellijay Adam M. Teague should pay $1, 324,220.The notification is manifold. The eleven page order serves as a 1) Notice of Intention to Prohibit From Further Participation 2) Notice of Assessment of Civil Money Penalty 3) Findings of Fact and Conclusions of Law 4) Order to Pay 4) Notice of Hearing.
In the document, Teague is accused of using
“his position with the Bank to misappropriate more than $10 million in Bank funds and transfer them to his related interest,” where “his related interest used those funds to purchase properties that a Bank customer intended to purchase…His related interest immediately resold those properties to the Bank customer at a substantially higher price resulting in a personal gain to Respondent (Teague) of $1,324,220.”
The Notice includes Civil Money Penalty. This is a legal request or recommendation that Teague pay back the $1,324, 220 he gained from a series of business transactions. According to the notice, these transactions are classified in the document as “conflict of interest,” although this is only one in a string of charges against the former vice president. The notice states that in 2007, while Teague was employed at Appalachian Community Bank in Ellijay, he was simultaneously 50 percent owner of a limited liability corporation called Soak Creek Preserve Partners ( SCPP). Appalachian made a seemingly indirect loan to SCPP of $ 8,038,500 for the purchase of 5043 acres of land in Tennessee. A series of transactions ensued, where the land was later sold significantly above market value. Teague reaped $ 1,324,220 from the deal. Now, in the wake of his alleged misconduct, the former vice president is expected to repay the amount in full. However, if Teague disputes these allegations and feels the order unjust, he has the option of requesting a public hearing, where he has the opportunity to defend himself against these findings.
In a press release yesterday, the FDIC disclosed its August Enforcement Actions. And, although the notices against Teague were listed, no administrative hearings were scheduled for September. FYN will continue to investigate the situation and follow this story as it develops.
Yes, what Adam did was criminal because of his position at the bank...but at least the bank did get the money back which is more than all the developers can say. They really stuck it to the bank and that leaves the taxpayers to pick up their tab since the bad loans are picked up for the most part by the FDIC .
Adam Teague certainly was not in this alone, so many lives were touched by this fraud, and yet , at this time there are still people employed at this NEW bank who benefited by Teague and his handpicked circle of bandits.
I do know Adam. Or maybe I thought I did. I went to school with him. Was in his graduating class. A few year's ago I found a house to consider buying. The builder sent me to the bank to see if I would even be approved to buy it. Adam was my financial advisor. As time went on I found that his brother was one of the builders & Adam was in on the contract. I don't think my interest was best served. Not sure who was responsible, but I don't think I was out of the parking lot before my mortgage was sold to another company. Either way the builders, Adam & his brother included, got their money, the bank was off the hook for the mortgage. In the end, I lost the house after 3 years. My payments were half of what my income was at the time. Being a first time home buyer, I trusted Adam. After all, I had known him most of my life and he did work at a bank. I guess it's even a dog eat dog world even in Ellijay.
Isn't it amazing that anyone could fly into town and just sign a note & get 100s of thousands of dollars & we had to put up our home & property to just borrow a few 1000? Maybe we should have all bought new suits & ties then we could have just signed our name and not worry about pay back. As the saying goes what goes around comes around.