TMCnet News

BB&T denies coverup allegations: Firing, loans not related, bank says
[December 08, 2007]

BB&T denies coverup allegations: Firing, loans not related, bank says


(News & Observer, The (Raleigh, NC) (KRT) Via Thomson Dialog NewsEdge) Dec. 8--BB&T, North Carolina's third-largest bank, vigorously denied charges Friday that a former internal investigator for the company was fired for refusing to participate in the coverup of a $20 million loan fraud.



Amy Stroupe, who filed a lawsuit against the company this week, said she was fired for pursuing an investigation of more than 120 fraudulent real estate loans.

The loans were connected to a failed development in Western North Carolina known as the Village of Penland that left investors owing banks about $120 million.


"The allegations are totally and completely false," said Bob Denham, head of corporate communications for BB&T. "We simply cannot say it stronger than that."

Denham said the company's comments on the case must be limited because of the litigation, but he made it clear that the bank considers Stroupe's claims baseless.

"It is unfortunate, however, when an individual chooses to try the case in the court of public opinion while the other side has to play by another set of rules," Denham said. "Miss Stroupe's termination was totally unrelated to the Penland case. We have the facts on our side."

Denham did not offer an explanation for why Stroupe was fired.

Stroupe's attorney, John Yanchunis of Tampa, Fla., said BB&T was approached about settling the case without going to court but refused to consider it.

"Had they acknowledged her firing was related to Penland, they pretty much would have had to acknowledge liability in the case," Yanchunis said. "Based upon the consistent conduct of BB&T to try and cover up what occurred at the Village of Penland, this doesn't surprise me. I have no idea what facts he talks about, but they aren't facts based in reality."

Stroupe, a former sheriff's detective who was hired in 2005, was fired June 20. She alleged in her suit that she pushed her investigation of Penland because many of the loan applications used the same loan officer, appraiser, lawyer and picture of what appeared to be the same mountain lot. The lots were often appraised for more than market value and sold to people who had never visited the site or met the loan officer, the suit said.

The state Attorney General's Office forced developers to stop work on Penland after developers told investors they could no longer honor their original contracts. Once the project collapsed, investors were left owing various banks millions of dollars while holding titles to mountain property that was overvalued.

Noelle Talley, a spokeswoman for the Attorney General's Office, said the state will review Stroupe's case and other information to determine whether banks should be allowed to continue collecting on the loans.

Denham said he is confident BB&T will ultimately be cleared of the accusations made by Stroupe.

"We will abide by the law and patiently wait until it is our time to vigorously present our case in a court of law," he said.

[email protected] or (919) 829-4535

To see more of The News & Observer, or to subscribe to the newspaper, go to http://www.newsobserver.com.

Copyright (c) 2007, The News & Observer, Raleigh, N.C.
Distributed by McClatchy-Tribune Information Services.
For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

[ Back To TMCnet.com's Homepage ]