Albany man indicted in fraud scheme also involving Bainbridge man

Published 2:29 pm Friday, January 27, 2012

An Albany, Ga., businessman was indicted on fraud and bribery charges earlier this month, in a scheme that also reportedly involves a former loan officer at Southwest Georgia Farm Credit in Bainbridge.

Joseph W. “Wiley” Jordan, the owner of Southeastern Farm Brokers in Albany, was indicted by a federal grand jury on five counts of fraud on Thursday, Jan 19. According to the indictment, Jordan allegedly borrowed approximately $3.4 million from June 2007 to January 2008.

Larry J. Malone, a Bainbridge man who is a former loan officer at Farm Credit, reportedly approved the large loans for Jordan. The indictment also charges that Farm Credit paid Jordan $36,500, from February 2007 through September 2007, for referring new borrowers to the company.

Email newsletter signup

Malone is not named in the most recent indictment. He pleaded guilty in October 2011 to federal charges of conspiracy to commit bank fraud and receipt of gifts or commissions for procuring a loan, in a separate case.

In that case, Malone was accused of accepting a $50,000 bribe from four Florida citizens, who were indicted on federal charges as well — none of the five have been sentenced yet.

Farm Credit CEO Richard Monson has previously stated that Malone’s employment with the company was terminated on May 2008.

“We know that Mr. Malone has already pleaded guilty for bribery,” Monson said. “At the time of these most recent allegations, Mr. Malone was a representative of Farm Credit. When those fees [referring to the referral fees Malone allegedly paid to Jordan] were paid, they were paid by Mr. Malone as a representative of Farm Credit, but he did not necessarily have the authorization to do so.”

According to the indictment, Jordan would receive large loans from Farm Credit, including some as large as $200,000, and then pay Malone $25,000.

Monson said that he and other Farm Credit executives have not yet been subpoenaed, but the company is cooperating with the process.

“We have been in communication with the Department of Justice,” he said. “Right now, because it’s just an indictment, it’s just ‘he said, she said.’ There’s not a lot that I can comment on, or speculate on, but we’ve done everything we’re required to do and what is prudent to do. We’re pleased that our justice system is working.”

When reached by phone, Malone declined to comment.

The Albany Herald first reported this story.