- Key insight: A branch president's lending autonomy enabled him to commit a multimillion-dollar credit fraud against the bank.
- Expert quote: Prosecutors said in court documents that Childs "played a critical role in the continued spiraling of debt."
- Supporting data: Childs extended 57 loans, collectively exceeding $3 million, to the same logging business owner.
Overview bullets generated by AI with editorial review
A federal court this week ordered Alan Childs, former market president for Morris Bank's branch in Gray, Georgia, to surrender to authorities for a one-year prison sentence after he pleaded guilty to conspiracy to commit bank fraud.
Childs admitted to defrauding Morris Bank of over $3 million by abusing his personal lending authority as the bank branch president. The court records do not detail any specific motive Childs had.
Morris Bank policy allowed Childs to lend up to $500,000 per customer relationship, but exceeding this limit required approval from a senior credit officer. Additionally, the bank mandated additional approvals on loans exceeding $50,000 that were graded substandard.
Childs knowingly circumvented these rules by extending 57 loans, collectively exceeding $3 million, to Ronnie Atkinson, the owner of an eponymous timber business. Prosecutors did not describe what, prior to the fraud scheme, the relationship between Atkinson and Childs had been.
WMAZ-TV, a TV station in Macon,
A federal judge this week reportedly sentenced Childs to a year in prison, according to WMAZ-TV. Court records indicate he agreed to never again work in the banking industry.
The scheme unravels
Childs personally handled all of Atkinson's loans, starting in March 2018. By June 2019, Atkinson's loan relationship had already hit the $500,000 lending cap.
Around the same time, Morris Bank downgraded Atkinson's loans to substandard, triggering additional approval requirements.
Beginning in August 2019 and continuing through May 2022, Childs facilitated Atkinson's use of relatives and friends as straw borrowers for loans intended solely for Atkinson's benefit.
Childs allowed Atkinson to bypass the $500,000 lending limit without the necessary approvals, making it appear as though these loans belonged to different customer relationships.
Childs also failed to seek the required approval for Atkinson's loans that were graded substandard and neglected to verify the reported income or other information for these straw borrowers, despite Atkinson providing false income details on loan applications.
Ignoring red flags
In March 2021, a credit administrative officer at Morris Bank emailed Childs, inquiring if the Atkinson relationship exceeded $500,000 and required an approval form.
Two days later, the officer followed up, noting loans totaling over $1.6 million tied to Atkinson — though this did not include all of the loans that Childs had actually extended to Atkinson.
According to the credit administrative officer, Childs responded that the loans were not all related because they had their own repayment sources and should therefore not be considered the same relationship.
Even with Atkinson's loans deep in delinquency, Childs continued to approve more. For instance, in June 2021, Childs approved a $171,589.00 loan to a person with the initials D.R. to purchase a skidder, a heavy vehicle for pulling cut trees out of a forest.
The loan application's bill of sale showed Atkinson as the actual buyer, and the alleged seller never even sold the equipment.
By December 2021, Morris Bank officials became aware of the aggregated, related loans and their continued delinquency. Yet, Childs persisted, approving multiple large loans in 2022 for straw borrowers that were, in fact, for Atkinson's benefit.
Had Childs sought the approval for these loans under Atkinson's relationship, the request would have been denied given the delinquency issues, according to prosecutors.
The scheme also involved fraudulent bills of sale, some inflating purchase prices and others listing sellers who never actually sold any items. In many instances, Morris Bank issued loan checks to these reported sellers, who were then instructed to cash the checks and provide the funds directly to Atkinson or his relatives.
Childs even directed another Morris Bank employee to issue two cashier's checks totaling $239,000 to one reported seller from a single loan check.
Atkinson later engaged in fraudulent check cashing, sometimes using pictures of identification cards belonging to individuals who were not present and had not authorized the transactions.
Sentencing and job prospects
Prosecutors said Childs "played a critical role in the continued spiraling of debt incurred by [Atkinson] and Morris Bank ultimately losing $3,357,073.21."
As of Jan. 16, Morris Bank was still owed that amount, and Childs has agreed that this represents the highest possible restitution amount.
Prosecutors are seeking this full amount in restitution, jointly from Atkinson, who also pleaded guilty in connection with the scheme.
Childs faced a maximum sentence of thirty years in prison, a $1,000,000 fine and five years of supervised release.
According to a statement
Childs also agreed to an order prohibiting him from further participation with the Federal Deposit Insurance Corporation, which effectively bars him from future involvement in the banking industry.
