Expert Details
Banking, FDIC, Garnishments, Levies, Fraud, and Internal Controls
ID: 731323
Georgia, USA
Expert has served as an expert witness and has given expert testimony in state/federal courts in North Carolina, Alabama, Georgia and Florida. He has testified on such topics as money laundering, garnishments, fraud (bank, mortgage and other), internal controls and losses.
During the recent economic downturn, Expert spent hours with banks mitigating regulatory mandates by state and federal bank regulators while raising capital to help these banks get these orders removed.
His firm also has experience in the construction and manufacturing industries with CPA's who have spent over 20 years in those industries.
Expert has managed bank eligible investments for financial institutions for over 25 years. These provided him with an extensive knowledge of bank securities, municipal securities and mortgage backed securities of all types, including REMICs and other structured securities.
He has participated in 5 mergers and acquisitions, including transition periods and managed these efforts.
He has worked for employers that underwrote and serviced over $500 million of Fannie Mae and GNMA mortgages and has implemented automated systems to assist with this process.
Expert has also helped establish mortgage loan origination centers as a consultant and as an employee on 4 occasions.
Began engagement with a bank that had capital ratios just above the minimum level to stay open. Shareholders were convinced that regulatory closure was eminent. Worked with management for almost two years to restore capital acceptable capital levels to prevent closure. Helped liquidate problem assets faster than prescribed in the regulatory order. Helped restore bank's profitability. Raised capital to relieve bank of the regulatory order, but management decided to earn their way back to sufficient capital over time. Remain as an advisor to the bank on accounting, operations and regulatory matters.Relieved bank of regulatory order in slightly less than one year. Re-engineered loan loss accounting process to allow compliance with FDIC and accounting regulatory order. Restored loan loss reserves to acceptable levels. Re-engineered bank fixed income investment portfolio to minimize capital concentrations and diversify holdings. Implemented short term, liquid investment options to enhance earnings. Evaluated new accounts platforms and recommended solution.Re-established identity and review of derivative investments for Fannie Mae. Re-classified portfolio to properly reflect investment types. Implemented SOX 404. Assisted with four years of financial restatement. Assisted valuation team in revaluing Fannie Mae's entire investment portfolio. Assisted Deloitte with restatement.Assisted new bank with formation and capital raise. Designed systems and helped open bank for business. This included helping select bank location and business model and plan.Assisted regional bank in selling sub-prime consumer loan subsidiary. Performed due diligence and account migration.
Education
| Year | Degree | Subject | Institution |
|---|---|---|---|
| Year: 1988 | Degree: MBA | Subject: Accounting | Institution: Georgia College and State University |
| Year: 1982 | Degree: BBA | Subject: Finance | Institution: Mercer University |
Work History
| Years | Employer | Title | Department |
|---|---|---|---|
| Years: 2010 to Present | Employer: Undisclosed | Title: Managing Member | Department: Forensic Accounting and Consulting |
Responsibilities:Formed a practice that provides the following services:• Expert Witness Services o Provide assistance with the accounting analysis of evidence, bank transactions, credit transactions, kiting, levies, garnishments and many other accounting and bank transactions. • Fraud and Special Investigations o Manage controlled and structured fraud investigations, compiled evidence and presented conclusions related to financial and structural fraud. • Bank Consulting and Advisory Services o Assists in saving banks from regulatory takeover by raising capital and readdressing the allowance for loan and lease losses and troubled credits. • Credit Advisory Services o Negotiates and restructures credit arrangements and terms to prevent or assist in structured bankruptcies. • Tax Advisoy Services o Advises clients on income/property tax matters, including matters dealing with IRS Liens and delinquent taxes. • Litigation Support o Reviews and analyzed financial evidence for review and presentment to in court to a judge/jury. • Business Structure and Organization o Top-down or partial reorganization of organizational structure and functional re-engineering of work-flows to improve efficiency and profitability. |
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| Years | Employer | Title | Department |
| Years: 2007 to 2010 | Employer: Appalachian Bancshares, Inc | Title: EVP/CFO/COO | Department: Accounting and Operations |
Responsibilities:Chief Financial Officer for $1.2 Billion, two charter, NASDAQ, public traded multi-bank holding company. Served on Asset Liability Committees, AuditCommittee, and Corporate Governance and Compensation Committee. Also, reported financial results and budget comparisons monthly to Board of Directors of Appalachian Bancshares, Appalachian Community Bank and Appalachian Community Bank, FSB. Managed shareholder relations, deposit operations, loan operations, accounting, financial reporting, and risk management; 13 branches in 3 states. Financial Achievements • Instrumental at converting cash management from correspondent bank to a direct relationship with the Federal Reserve Bank of Atlanta. This reduced related operating expenses by over 50%, providing a boost to profitability. It also created operational efficiencies increasing cash availability and streamlined cash management. • Avoided duplication of employee benefits by implementing an Employee Stock Option Plan with 401k provisions to allow potential leveraged purchases of APAB stock during advantageous market periods for future employee awards. • Replaced shareholder relations firm and personally authored annual reports, press releases and earnings conference call scripts saving over $125 thousand annually. • Implemented new system for foreign currency exchange and foreign wire transfers doubling income potential for this product offering. • Negotiated all contracts improving service, product and saving money. • Coordinated production of financial package for raising private equity capital. Operational Achievements • Directed implementation of remote capture for customers and branches. Resulted in all day, same day processing without cut-off decreasing financial float and increasing efficiencies. • Implemented procedures to ensure that new account documentation exceptions are elevated to management if not corrected timely. • Converted from ARTA to Compliance One, new account platform. • Separated the Federal Savings Bank charter dependence on the state bank charter in less than 30 days. Risk Management • Managed enhancement of procedures for compliance activities which monitored money service businesses. • Assisted in improving compliance with Flood Hazard Protection Act. • Directed transition to in-house Internal Audit Department. Accounting Management • Coordinated and managed consolidation of bank holding company subsidiaries. • Prepared and managed process for quarterly and annual financial statements used for annual report and SEC reporting. • Reviewed and edited SEC Form 10Q and 10K. • Managed preparation of FDIC Call Reports and OTS Thrift Financial Reports. • Prepared budgets and financial projections of both subsidiaries. • Actively integrated accounting projections with strategic planning process. |
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| Years | Employer | Title | Department |
| Years: 2005 to 2007 | Employer: Callaway Partners/Huron Consulting Group | Title: Group Lead | Department: Consulting |
Responsibilities:Project Lead while working directly with Director for Securities Accounting during Fannie Mae’s re-audit and financial restatement project in Washington, DC.Assumed duties for Director and Vice President allowing them to participate in the financial restatement for four previous years. Managed both Fannie Mae personnel and a team of 10 consultants. Audit Accomplishments • Supported Deloitte, the external auditors by providing PBC schedules and information. Also, provided supporting documentation and evidence for schedules. • Worked directly with the asset pricing team as led by Price Waterhouse Coopers. Assisted in resolution of issues related to Emerging Issues Task Force 99-20 and Other Than Temporary Impairments. Provided accurate data for statification and pricing of Fannie Mae’s investment portfolio. • Utilized ad hoc report writer (SQL), to provide Fannie Mae’s Financial Reporting Team with restated numbers to correct previous reporting errors. Mapped all corrected data to data groups for use in reporting SEC Forms 10-K and 10-Q. Continuing to manage these processes. Continuing to purify consistency in the securities’ database and provide additional data to Fannie Mae’s regulator, OFHEO, and management as requested by using SQL. Assisted in establishing SOX 404 compliance in Securities Accounting. Operational Achievements • Helped re-engineer financial reporting processes and systems for securities portfolio. Securities Accounting and Financial Reporting were operating independently causing financial irregularities. Coordinated and streamlined data feeds from Securities Accounting to Financial Reporting to provide timely and accurate reporting. • Led significant data validation and correction efforts to purify the Securities Accounting’s database. This major project impacted and required interaction and cooperation of the Trading Department, Portfolio Management, Securities Accounting and Financial Reporting departments. • Led additional effort to securely monthly Real Estate Investment Conduit (REMIC) collateral for new securities proposed by Fannie Mae. This effort provided new securities for the financial markets. • Directed an effort to obtain and update missing documentation for over 3,600 mortgage revenue bond securities owned by Fannie Mae. • Worked directly with mortgage services coordinating the formation and cash flow for securities. |
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| Years | Employer | Title | Department |
| Years: 2003 to 2005 | Employer: Self Employed | Title: Managing Partner | Department: Consulting Firm |
Responsibilities:Provided accounting and consulting services to clients while enhancing efficiency and business models.Mortgage Banking Established a mortgage banking branch in Metro Atlanta for an out-of-state mortgage company. Hired and trained all personnel. Established key relationships for a successful business model. Directed all aspects of the project from the feasibility study, license applications and the business plan with proforma financial statements. Assisted in the set-up of mortgage servicing and management prior to hiring a replacement. De Novo Bank Assisted in raising capital and the application for a new state chartered bank. Negotiated all major contracts and helped set up operations. Portfolio Management Advised several banks concerning investment and asset liability management. Merger and Acquisition Acted as merger and acquisition liaison and contract CFO for Chattahoochee National Bank. Worked with external accountants through the merger and acquisition of Chattahoochee National Bank and First Capital Bank. Prepared Securities and Exchange Commission and regulatory filings pertaining to this merger. Assisted in operational transition. Forensic Accounting: Served as an investigatory lead for cases of fidelity insurance claims and fraud investigations |
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| Years | Employer | Title | Department |
| Years: 1999 to 2003 | Employer: Chattahoochee National Bank | Title: EVP/CFO | Department: Accounting and Operations |
Responsibilities:Executive officer and member of a three person executive management team for a publically traded bank holding company. Reported directly to President andChief Executive Officer. Attended and actively participated in monthly board meetings as assistant corporate secretary. Directly responsible for retail banking operations, bank operations, internet banking operations, human resources and management of information systems. Actively managed the Asset Liability, the Audit and the Operations Marketing and Technology Committees. (Merged and eventually purchased by RBC Centura) Financial Accomplishments • Helped grow de novo bank from $27.0 million in January 1999 to $145.0 million in 2003. Achieved monthly profitability early in 2000. • Successfully managed a $45 million investment portfolio as a peer group high performer while matching cash flow and cash projections maximizing balance sheet leverage. • Designed leveraged Employee Stock Option Plan that allowed repurchase of stock during depressed market periods. After two subsequent mergers, many employees benefited significantly from this benefit. • Coordinated and prepared annual budgets. Operations Efficiencies • Cross trained all staff and developed operational and procedural manuals to avoid interruptions for staff and customers. • Coordinated the design and implementation of http://www.bankthehooch.com. Managed the selection and implementation of Internet banking in 2000. Designed and implemented internal controls for the Internet Banking system. • In 2002-2003, managed the selection and implementation of a new core data processing system. Risk Management • Implemented Sarbanes Oxley provisions by developing a risk assessment, monitoring and maintenance program. • Responsible for policy design and implementing strategies for each committee. • Liason between the Board of Directors for both external and internal audit firms. Actively provided data and schedules for external audit and internal audits. |
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| Years | Employer | Title | Department |
| Years: 1997 to 1999 | Employer: First Community Bank and Trust | Title: EVP/CFO | Department: Accounting and Retail |
Responsibilities:As an executive officer, reported directly to the bank president and chief executive officer. Officers responsible for retail and bank operations and MISmanagement reported to this senior position. Also, responsible for internal and external financial reporting. Prepared all necessary SEC Reporting Forms. Active participate in strategic planning and budgeting. (Merged in to National Bank of Commerce, Memphis, TN) Financial Accomplishments • Managed a $25 million investment portfolio. Increased tax equivalent portfolio yield by 0.67% in less than nine months during a decreasing interest rate environment. • Managed periodic cash flows while maximizing interest margins. • Key member of Asset Liability Committee. In March 97, over 20% of this banks earnings were at risk if interest rates increased 2%. In less than six months, implemented strategies to reduce this exposure to less than 1% of earnings. • Responsible for negotiating significant contracts and purchases of fixed assets. Risk Management • As risk manager, negotiated and reviewed all insurance coverages for adequacy. • Liaison between Board of Directors and external auditor. Operations Management • Designed and implemented profitability model that led to over $45 million of new commercial deposit business. • Assisted with the implentation of an enhanced ATM network allowing customers to use a large network of ATM’s with no surcharges. • Designed reporting system to allow better tracking of deposits and transactions. |
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| Years | Employer | Title | Department |
| Years: 1993 to 1997 | Employer: Georgia Federal Credit Union | Title: CFO | Department: Accounting |
Responsibilities:Reported directly to the President and Chief Executive Officer. Also, responsible for internal and external financial reporting. Prepared annual budget.Successfully managed $35 million investment portfolio. Managed periodic cash flows while maximizing interest margins. Managed Assets/Liabilities. Managed Operations. Active participate in strategic planning. M & A experience. Liaison between Board of Directors external and internal auditors. Profitability Management and Reporting • Implemented and managed cost accounting for 13 profit and cost centers. • Designed and implemented a set of Board reports that allowed effective communication of financial results numerically and paragraphically to facilitate different communication patterns of different Board members. Operations Accomplishments • Coordinated the building of 3 new branches and relocation of corporate headquarters. • Redesigned processes for computer operations to facilitate better management decisions. • Increased timeliness of monthly closing procedures, reducing timeframe to 5 days. • Standardized ACH data transfer payroll processes for member groups. • Converted 2 acquired credit unions. • Assisted with set up and management of mortgage servicing |
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| Years | Employer | Title | Department |
| Years: 1991 to 1992 | Employer: Fayette County Bank | Title: EVP/CFO | Department: Accounting and Operations |
Responsibilities:Reported directly to the bank president. Officers responsible for retail and bank operations and MIS management reported to this senior position. Also, responsiblefor financial reporting, internally and externally. Managed Bank Operations. Prepared all necessary SEC Reporting Forms. Successfully managed $17 million investment portfolio. Increased tax equivalent portfolio yield. Managed periodic cash flows while maximizing interest margins. Key member of Asset/Liability Committee. Responsible for negotiating significant contracts and purchases of fixed assets. Implemented a automated, online, personal computer teller system. As risk manager, negotiated and reviewed all insurance coverages for adequacy. Active participate in strategic planning and budgeting processes. Liaison between bank and external auditors/internal auditors. Prepared schedules as requested for all audits. Coordinated all external audit confirmation requests. (Left due to a pending merger with a larger regional bank, Bank South/Nations Bank.) |
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| Years | Employer | Title | Department |
| Years: 1991 to 1993 | Employer: The Chattahoochee Bank | Title: Internal Audit Manager | Department: |
Responsibilities:Formalized the internal audit and regulatory compliance functions. Reported to CFO and Board of Directors. Responsible for design and maintenance of internalcontrol procedures. Worked with external auditors during their annual audit. Coordinated all external audit confirmation requests. Followed any confirmation exceptions to satisfactory conclusion. Also, provided schedules as requested to the external auditors. Instrumental at identifying and assisting in the correction of major flaws in operational processes and internal controls. Member of Data Processing Search Committee. Assisted in a conversion and implementation of a document imaging and payment system. Acted as an internal data processing and personal computer consultant. Assisted in the implementation of a Novell LAN and in the installation of an automated mortgage loan origination package, including servicing. Left due to a merger with a larger regional bank. (Merged with Bank South/Nations Bank) |
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| Years | Employer | Title | Department |
| Years: 1989 to 1991 | Employer: Citizens Bank | Title: Controller | Department: |
Responsibilities:Reported directly to the bank president. Responsible for financial reporting, internally and externally. Successfully managed $18 million investment portfolio.Increased tax equivalent portfolio yield. Managed daily cash flows while maximizing interest margins. Key member of Asset/Liability Committee. Responsible for negotiating significant contracts and purchases of fixed assets. Involved in Merger and Acquisition work. As risk manager, negotiated and reviewed all insurance coverages for adequacy. Active participate in strategic planning and budgeting processes. Liaison between bank and external auditors. Left due to a pending merger. Liason between Board of Directors and internal/external auditors. Provided schedules and assisted as requested. Coordinated all external audit confirmation requests. Followed any confirmation exceptions to satisfactory conclusion. Assisted with set up and management of mortgage servicing. (Merged with First National Bank, Gainesville, GA, then Regions Bank) |
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| Years | Employer | Title | Department |
| Years: 1987 to 1989 | Employer: First Federal Savings and Loan Association | Title: Controller/Internal Auditor | Department: |
Responsibilities:Established the internal audit and compliance functions. Reported to the Chairman of the Audit Committee and Board of Directors. Instrumental in improvingcontrols and procedures until September 1988. Implemented a formal audit calendar and reporting procedures as recommended by external auditors. Late 1988, I became controller and was responsible for financial reporting, internally and externally. Reported to the CFO. Managed daily cash, assets and liabilities for maximization of interest margin. Responsible for personal computer and data communication operations. Member of Data Processing Search Committee. Key member of a conversion and implementation team. Risk and fixed asset manager. Merger and acquisition experience. Coordinated all external audit confirmation requests. Followed any confirmation exceptions to satisfactory conclusion. Assisted in the management of a $385 million FHLMC and FNMA mortgage servicing portfolio. Left due to a pending merger with a larger regional bank. Managed Operations. (Merged with Columbus Bank and Trust, Columbus, GA) |
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| Years | Employer | Title | Department |
| Years: 1982 to 1987 | Employer: Citizens and Southern Georgia Corporation | Title: Audit Officer | Department: |
Responsibilities:Developed as an internal auditor with broad exposure to all areas of bank branch and operations. Wrote numerous audit programs and enhanced other auditprograms as deemed necessary during audits. Liaison with corporate legal and EDP audit staff. Managed audit staffs of up to nine professionals. Wrote audit reports in accordance with Generally Accepted Auditing Standards and presented findings to management and boards. Provided Ernst and Whiney schedules, work papers and other support as requested. Worked directly with the merger and acquisition team for the acquisition of Florida banking operations. |
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Government Experience
| Years | Agency | Role | Description |
|---|---|---|---|
| Years: 2005 to 2007 | Agency: Fannie Mae - Quasi Agency | Role: Consultant | Description: Project Lead on four year financial restatement and process re-engineering of Securities Accounting Division. |
Career Accomplishments
| Associations / Societies |
|---|
| Georgia Society of Certified Public Accountants: 1996-1999, 2015-2016 American Institute of Certified Public Accountants: Current member Association of Certified Fraud Examiners: Current member Financial Managers Society: 2008-2009 Forensic Expert Witness Association: Current member Georgia Charter Educational Foundation: 2012- current Georgia Bankers Association Community Bankers Association Rotary Club of Cherokee County: Current member |
| Licenses / Certifications |
|---|
| Certified Public Accountant (Georgia License) Certified Fraud Examiner |
| Professional Appointments |
|---|
| Board Member and Treasurer of Georgia Charter Educational Foundation |
| Publications and Patents Summary |
|---|
| Expert has authored various articles concerning banking matters and served as a speaker for those items for the Georgia Society of Certified Public Accountants, Georgia Banking Association, Bank Administrative Institute and Community Bankers Associate of Georgia. Topics include the following subjects: Bank Fraud- The Next Frontier Kiting- How to detect and prevent FASB 5/114- Accounting for Allowance for Loan and Lease Losses Purchase vs. Pooling- Is it changing the merger atmosphere Money Service Businesses Internal Control- How do we improve? The Paperless Society- Making Imaging Work Productively What to Communicate to Shareholders about Privacy Monthly Financial Institutions Newsletter |
Additional Experience
| Expert Witness Experience |
|---|
| Expert has acted as an expert witness/litigation consultant on cases involving money laundering, internal control evaluation, garnishments, merchant credit card matters and other banking issues/regulations. These cases were being tried in both state and federal courts in Alabama, Florida, North Carolina and Georgia. He has given depositions in all but one case and testified in some cases in both federal and state courts. |
| Training / Seminars |
|---|
| As the chairman of the Financial Institutions Committee for the Georgia Society of Certified Public Accountants, Expert and his firm provided annual conferences of emerging banking topics, including expert panel discussions. He participated and moderated those panel discussions. 1988 Asset, Liability Management School 2004 Mortgage Lending School |
| Marketing Experience |
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| Expert has written many policies and automated many tasks related to Loan Loss Accounting, Investment Management and Bank Asset Liability Management. |
| Other Relevant Experience |
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| Expert holds an MBA and is a Certified Fraud Examiner. He is currently licensed as a Certified Public Accountant in the state of Georgia. Teaching- Related Experience: Adjunct Accounting Professor, Part-Time 1993-1996 Adjunct MBA Accounting Professor, Part-Time 1997-Present Guest Lecturer 1995-1996 Presenter 2001-2004 |
Fields of Expertise
accounting fraud, bank analysis, bank fraud, bank mortgage, bank policy, bank procedure, banking, banking regulation, Federal Deposit Insurance Corporation, fixed income securities, forensic accounting, fraud, fraud investigation, internal audit, loan, money laundering, mortgage, mortgage banking, mortgage fraud, retail banking, securities fraud, tax fraud, bank security, investment, investment management, mergers and acquisitions, mortgage backed security, mortgage loan, mortgage servicing, mortgage underwriting, financial restructuring, accounting ethics, bankruptcy accounting, home equity line of credit, home equity loan, credit card