Wednesday, September 30, 2009

Whistleblower Fired After Exposing Ponzi Scheme

At long last, here's some more coverage of the Village of Penland disaster. Thank goodness for courageous people like Amy Stroupe, willing to do the right thing regardless of the consequences.



More at:
http://www.wcnc.com/6newsextra/investigators/stories/wcnc-091609-mw-whistleblower-case.188974b27.html

In December 2007, Tim Simmons with the News and Observer (Raleigh) reported on the case:

A former corporate investigator for BB&T filed suit Thursday against North Carolina's third-largest bank, saying the company fired her in June for refusing to participate in the coverup of a $20 million loan fraud.

Amy Stroupe, a sheriff's detective before she was hired by BB&T in 2005, said the loans were made as part of a failed real estate development in western North Carolina.

The development, the Village of Penland, collapsed in May [2007] with investors owing banks an estimated $120 million.

The banks involved in the development said they were duped, but Stroupe claims BB&T participated in the fraud by lending money for lots that were clearly overvalued. She said more than 120 BB&T loans used the same appraiser and lawyer and a picture of what appeared to be the same mountain lot.

She alleges that she was fired, in part, for contacting the Federal Bureau of Investigation and insisting that all details be turned over to them. Stroupe said she knew her investigation had upset some supervisors but that she was still shocked by their reaction.

4 comments:

Anonymous said...

It is a lonely world for the whistleblower. I had a similar experience in the 90s. No one wants to hear about, lest hire you. But I couldn't have done it any other way. And, I would do it again if the same circumstances presented themselves.

Will said...

Interesting that back in 2006 Legasus was also offering to pay interest for buyers. http://estate.newsag.com/real-estate-news/id_16934/

Anonymous said...

I wonder why , after the trial daes were set for this - I cannot find information about what happened next?
Do yo uknow? I thought that 3 of the Penland folks pled guilty and why have I not been able to find out anything aout the sentencing?
It seems like that would be big news- but I cannot find anything by internet searches. I'd love to know - this seems so incredible to me - the whole story .And it IS TRUE- LEgasus was offering to make payments for 18 months to anyone purchasing reservations for their property.

GULAHIYI said...

Agreed. I have not heard anything new on this for a long time. But I will post an update if I can get any news.