Acting U.S. Attorney Stephen M. Schenning announced Thursday a former bank president was indicted on charges of bank fraud and theft of bank funds.
Fifty-eight-year-old Davis Harris Lavine of Rockville, Maryland was employed as the acting president of CFG Community Bank from March 2010 until January 2011 and president of Capital Financial Ventures LLC from January 2011 and August 2011. Lavine utilized $100,000 of bank funds for his own personal use, while he was acting president of CFG Community Bank. He also refinanced bank-owned mortgage loans and utilized the proceeds for his own personal benefit, according to the indictment.
Lavine’s friend, 58-year-old Charles L. Tobias, of Potomac, Maryland, received some of the fraudulent bank funds from Lavine. He was indicted for tax evasion and conspiracy to defraud the Internal Revenue Service.
Lavine posed as the CEO and President of CFG Community Bank. He invited borrowers of two loans with balances of more than $7.5 million to refinance their loans with other banks for a lower mortgage and pay off CFG Community Bank. The settlement company sent the mortgage loan payoff to Lavine inside of CFG Community per his direction. To conceal the $775,000 payment, Lavine provided CFG Community Bank with false documents.
Tobias and Lavine owned Capital T Partners Brookfield LLC. In 2011, the Tobias and Lavine donated a portion of non-performing mortgages to a charity as an in-kind donation, receiving a valuable tax deduction for their company that passed through to their personal income tax returns.
In addition to the bank fraud and theft charges, Lavine was charged with using the fraudulent charitable contribution as a deduction and tax evasion for two years for failing to report the fraudulent funds.
The bank offenses carries a maximum 30-year prison sentence and $1 million fine per count.