Press Release
United States Attorney James R. Dedrick
Eastern District of Tennessee
CONTACT: SHARRY DEDMAN-BEARD
PHONE: 865-545-4167
FAX: 865-545-4176
FOR IMMEDIATE RELEASE
TUESDAY, AUGUST 22, 2006
NEW INDICTMENT IN BANK FRAUD CASE
Jerry Wayne Cooper, McMinnville, Tennessee, Indicted for Fraud and Conspiracy
(Chattanooga, TN)—A grand jury sitting in Chattanooga, Tennessee, returned a three-count felony Indictment today charging Tennessee State Senator Jerry Wayne Cooper, McMinnville, with bank fraud, mail fraud and conspiracy to commit bank and mail fraud.
No trial date has been set. A warrant has been signed for Mr. Cooper’s arrest and he has agreed to surrender himself sometime next week. The maximum penalty for bank fraud and mail fraud is 30 years in prison and a $1 million fine on each count. The maximum penalty for conspiracy is 5 years in prison and a $250,000 fine.
The allegations are that Mr. Cooper conspired with others to defraud BankTennessee, Collierville, Tennessee, in connection with a $1.7 million loan made to Anthony’s Construction Company (“Anthony’s”) on November 23, 1999. The gist of the allegations are that the defendant and his coconspirators provided a false appraisal of Mr. Cooper’s woodworking plant located in Smartt, Tennessee, in order to obtain money from a federally insured bank for the prospective buyer of his property. It is further alleged that Mr. Cooper improperly used his political influence and contacts in order to sell the plant and avoid bankruptcy. It is also specifically alleged that Mr. Cooper helped to get Anthony’s a $485,000 equipment loan from the State of Tennessee and the promise of a rail spur from the State and Warren County as part of the conspiracy. According to the indictment, the appraisal falsely represented that the rail spur was already in place, having the effect of inflating the value of Mr. Cooper’s plant and inducing the bank to make the loan.
Anthony’s was owned and operated by Anthony Auyer and his wife Teresa, both of Huntsville, Alabama. They were previously convicted in this matter and sentenced in July 2006. Mr. Auyer pleaded guilty to bank and mail fraud and conspiracy to commit bank and mail fraud in connection with the aforementioned loan. He and his wife were also convicted of related bank fraud, wire fraud, money laundering and money laundering conspiracy charges. They were sentenced to 34 months and 18 months in prison, respectively. Mr. Auyer was ordered to pay restitution to BankTennessee in the approximate amount of $1.2 million and approximately $103,000 to the Tennessee Department of Economic and Community Development, which made the $500,000 equipment loan to Anthony’s. Mrs. Auyer was also ordered to pay restitution to both entities, totaling approximately $125,000.
The ongoing investigation associated with this indictment is being conducted by the Tennessee Bureau of Investigation (TBI) and the United States Department of Agriculture Office of Inspector General. Other agencies assisting in the investigation are the State of Tennessee Comptroller of the Treasury, the Federal Deposit Insurance Corporation (FDIC), the McMinnville Police Department and the Thirty-first Judicial District Attorney General's Office.
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The public is reminded that an indictment is a form of accusation and is not evidence of guilt. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
For additional information, please contact United States Attorney, James R. Dedrick, 865-545-4167, Assistant U.S. Attorney Gary Humble, 423-752-5140, or Public Information Officer, Sharry Dedman-Beard, 865-545-4167.