ASHEVILLE — Two former Pisgah Community Bank officials pleaded guilty in federal court to bilking the institution out of nearly $600,000.
Robert Craig Gourlay, who served as chief credit officer, faces up 40 years in prison and $1.25 million in fines at sentencing.
David G. Smith, who was a loan officer, could be sentenced to up to five years and fined a maximum of $250,000.
Gourlay pleaded guilty in U.S. District Court in Asheville this week to misapplication of funds by a bank officer and money laundering. Smith pleaded guilty to conspiracy.
According to court records, the men made $596,250 in fake loans in 2008 using “straw borrowers,” names that were substituted for the true borrower. ...Read the full article