I'm trying to find a link to a news story from several years ago (pre-2000) about a guy that scammed several banks through a participation loan. The guy was a former R J Reynolds executive and he obtained a loan from a banker he had known for some time. He borrowed millions, to the point the loan was participated, but made the guy swear to secrecy because his story was that RJR had discovered way to make cigarettes that would not cause cancer and he was heading up the development and securing the financing. The banker was the only contact to this guy and this guy was the only contact at RJR for the banker.

The scheme fell apart when a clerk at a Japanese bank (a participant) felt the borrowing resolution should have an attesting signature and called RJR to request. The guy pulling the scam had not worked for RJR for a couple of years. The guy went to prison, but they never found the money.

Does anyone remember this? I used to have a copy of the newspaper article years ago, but I don't know what I've done with it. I like to whip it out when an RM tells me the resolution isn't important.

thanks,

MJ

Although the facts cited don't match exactly, you are most likely thinking about the scam perpetrated by Edward J. Reiners against Signet Bank (now part of Wachovia) in the mid-90s. Google the two names & you'll find most of the details.

Yep, that is it! Thanks so much!

The story I found does, indeed, differ from the newspaper clipping I can't find, but the major facts are there.

MJ

Authorities are still looking for his co-defendant, John Ruffo.

http://www.usmarshals.gov/news/chron/15/ruffo15.htm

He may still be at large, but that notice is 7 years old!

Looks like he's still out there - at least according to America's Most Wanted...

http://www.amw.com/fugitives/brief.cfm?id=23199