Joseph E. White, 50, Atlanta, Georgia, and "Southern Lenders Mortgage Corporation," Newnan, Georgia, have been indicted on charges of defrauding its lender of approximately $3.7 million.

United States Attorney David E. Nahmias said, “This indictment alleges that Southern Lenders, a broker of residential loans, was fraudulently dealing with its own lender, nBank. We and the FBI, and the Office of Inspector General for the FDIC will thoroughly and vigorously investigate fraud against our federally insured banking system.”

According to United States Attorney Nahmias, the charges and other information presented in court: Between 1999 and 2006, White, acting as a principal of Southern Lenders, allegedly secured funding on multiple loans through a specific broker line of credit with a lender, “nBank.” When Southern Lenders subsequently sold these loans to investors, the funds to pay back the nBank credit line were allegedly fraudulently diverted. The alleged diverted funds totaled approximately $3,700,000. Accordingly to the Indictment, the funds were used for a number of purposes. The indictment alleges the money was used for the personal expenses of White and others associated with Southern Lenders; for Southern Lenders’ asset acquisition and expenses; to finance various real estate ventures; and to fraudulently provide “front money” to borrowers who were seeking loans being processed by Southern Lenders.

The indictment charges one count of bank fraud. The charge carries a maximum sentence of 30 years in prison and a fine of up to $1,000,000.