CEO of agricultural equipment sentenced to prison | Local News
VALDOSTA, Georgia – A southwest Georgia businessman and tractor supply company owner who pleaded guilty to orchestrating a complex fraud involving millions of dollars in loans from multiple creditors has been sentenced to prison and to compensate his victims for his crime.
Rickey Carter, 60, of Nashville, Ga., Was sentenced to 63 months in prison followed by five years of supervised release by U.S. District Judge Hugh Lawson on Wednesday, September 15, after pleading guilty to bank fraud. The court also ordered Carter to pay more than $ 6.3 million in restitution to banks and creditors who were defrauded, as well as to the US Small Business Administration. There is no parole in the federal system.
“This conviction recognizes the importance of holding the accused accountable for orchestrating a fraudulent scheme to obtain millions of dollars in loans from these banks,” said the special agent in charge, Kyle A. Myles of the Office of the United Nations. Inspector General of the Federal Deposit Insurance Corporation (FDIC -BIG). “The FDIC-OIG remains committed to working with our law enforcement partners to investigate financial crimes that threaten the integrity of the banking industry.”
Carter was president and CEO of Nashville Tractor (NTI), a company that sold and leased farm and construction equipment, attachments and parts. In 2016, he secured a U.S. Small Business Administration (SBA) loan from Farmers and Merchants Bank (FMB) in the principal amount of $ 5 million, the U.S. attorney’s office said. At the same time, NTI obtains a new line of credit and signs a credit agreement with BKW in the amount of $ 625,000.
In 2010, Carter had entered into an ongoing wholesale and safety finance agreement with CNH Industrial Capital America, LLC (CNH) to fund NTI’s inventory purchases for retail or rental, the attorney’s office continued. American. It also entered into a Retail Finance Agreement (RFA) with CNH under which CNH would purchase NTI’s stake in retail contracts for the purchase of agricultural and construction equipment with retail customers. The deal with CNH was a primary source of agricultural and construction equipment inventory for NTI.
Carter was able to continue NTI’s operations and other loan agreements were made with a number of other banks and funding entities, the U.S. attorney’s office said. In each case of a loan with the banks, Carter was required to provide true and complete financial information to the banks and was required to provide ongoing information for line of credit drawdowns. However, in 2015, NTI started having financial and cash flow issues that made it difficult to pay off loans and payroll.
During this time, the United States attorney’s office said, Carter began selling equipment she held in trust, but without paying the money to CNH and other creditors as required. Carter sold at least 88 pieces of equipment valued at over $ 1.5 million subject to CNH collateral and sold other pieces of equipment securing funding from Kubota Credit Corporation, Ameris Bank, Bank of Alapaha and Diversified Financial Services, the prosecution agency said. As part of the fraudulent scheme, Carter falsified NTI’s financial records in order to inflate the company’s net worth. As part of the falsification of records, Carter sometimes instructed NTI employees to generate payment checks on accounts payable but not send the checks, thereby reducing accounts payable but not deducting checks from NTI accounts. In 2016, Carter forged documents provided to FMB to secure the SBA loan and line of credit.
Carter also created fraudulent retail installment contracts for the sale or lease of numerous equipment with CNH using the names of real people whose information was available to Carter, the U.S. prosecutor’s office said. These fraudulent contracts generated more than $ 1.2 million in payments to NTI.
Carter continued throughout the SBA’s loan period to provide false and fraudulent information, the US attorney’s office said. In total, Carter admitted to being responsible for an expected fraud loss totaling more than $ 3.5 million but not more than $ 9.5 million. Carter is responsible for restoring actual monetary losses caused by the fraud to FMB ($ 1,227,319.66), SBA ($ 1,500,000), Ameris Bank ($ 321,934.50), Bank of Alapaha ($ 150,000 ), CNH ($ 2,782,959.99), KCC ($ 185,993.32) and Diversified Financial Services ($ 228,399.92).
The matter was investigated by the FBI and FDIC-OIG.
Assistant U.S. Attorney Robert McCullers continued the case.