3 sentenced in Alamo bank fraud scheme

At least eight persons were involved in a scheme to fraudulently obtain loans for alleged real estate purchases and the construction of 15 Krystal restaurants in West Tennessee. The accused reportedly obtained loans from a number of banks in the region. In the process, the Bank of Alamo exceeded its legal lending limit.

A federal grand jury issued five indictments in 2006, charging seven men and one woman with a smattering of conspiracy, bank fraud and other charges.

The accused include:

* Claude M. Conley, chairman of the Bank of Alamo, and John Sanders, the bank's president and chief executive officer. They are accused of falsifying information to hide the excessive loans.

* Former Brownsville restaurateur William Saveh, who also was president of SSE, a Tennessee corporation formed to develop 15 Krystal restaurants between March 1, 2000, and March 1, 2006. He owned 90 percent interest in the corporation. His brother, Lazaria Saveh, and his nephew, George Eivazzadeh, owned 5 percent each. William Saveh borrowed money in his own name and had Lazaria Saveh and George Eivazzadeh obtained loans on his behalf, too. William Saveh used part of the money to purchase property and the rest for his own benefit.

* Peggy Hooper, a real estate agent and owner of Brownsville Realty. She allegedly handled some of William Saveh's shady property transactions.

* William Paul Maddox and William Vincent Maddox Jr., both of Brownsville and both of whom were accused of fraudulently obtaining loans from First South Bank of Brownsville for William Saveh.

The men have all pleaded guilty. Three of them were sentenced on Monday and Tuesday.

Claude M. Conley, chairman of the Bank of Alamo board of directors and a resident of Alamo, pleaded guilty to conspiracy to defraud the United States and making false entries and other statements affecting a financial institution.

Four charges of bank fraud; two charges of making false bank entries, reports and transactions; and two charges of making fraudulent FCIC transactions were dismissed.

Conley received two concurrent sentences of 12 months and a day in a federal prison. The prison sentence will be followed by a total of five years of supervised release. He must undergo drug testing, must provide any requested financial information and is prohibited from incurring new credit charges or opening lines of credit without permission. He also must pay $1,143,113 restitution to the Federal Deposit Insurance Corporation and a $100 special assessment in each case.

Conley was 58 years old when he pleaded guilty in 2007.

George Eivazzadeh, also known as George Eivaz, was sentenced to two years of probation on one count of bank fraud. Three additional charges of bank fraud and one count of conspiracy to defraud the United States were dismissed. He was 33 years old when he pleaded guilty in January 2008.

During his probationary period, Eivazzadeh, must submit to drug testing, must provide financial information to his probation officer and is forbidden to incur new credit charges or opening new lines of credit.

Eivazzadeh, a resident of Lakeland, also was ordered to pay $465,487.40 restitution to the FDIC and a $100 special assessment.

Lazaria Saveh of Bells was sentenced to two years of probation for a single count of bank fraud. Two additional counts of bank fraud and one count of conspiracy to defraud the United States were dismissed. He was 55 years old on July 24, when he pleaded guilty.

During his probationary period, Saveh must submit to drug testing, must provide financial information to his probation officer and is forbidden to incur new credit charges or opening new lines of credit.

Saveh also was ordered to pay $60,516.47 restitution to the People's Bank (formerly Planters Bank of Maury City) and a $100 special assessment.

Four more defendants are scheduled for sentencing in the coming months.

William Paul Maddox was 30 years old on Feb. 5, 2007, when he pleaded guilty to making false statements to obtain an $11,185.40 loan from First South Bank. Additional charges of bank fraud and making false statements to obtain a loan are expected to be dismissed. He is scheduled to be sentenced Tuesday.

William Vincent Maddox Jr. was 33 years old on Feb. 5, 2007, when he pleaded guilty to making false statements to obtain a $14,245.92 loan from First South Bank. Additional charges of bank fraud and making false statements are expected to be dismissed. He is scheduled to be sentenced on Jan. 12.

William Saveh was 49 years old in July when he pleaded guilty to three counts of bank fraud and one count of making false loan and credit applications. The prosecution plans to dismiss additional charges of conspiracy to defraud the United States and multiple counts of bank fraud. He is scheduled to be sentenced Dec. 9.

John Sanders was 67 years old in February when he pleaded guilty to conspiracy to defraud the United States. Four counts of bank fraud and two counts of making false bank entries, reports and transactions are to be dismissed. Sanders' sentencing hearing has not been scheduled.

A last defendant, Peggy Hooper, was declared incompetent to stand trial in 2008. She was in her mid-70s at the time. She was named in four indictments and charged with one count of conspiracy to defraud the United States, seven counts of bank fraud and three counts of filing fraudulent loan and credit applications. All of the charges have been dismissed.