Former bank official Larry Malone sentenced in Albany federal court

ALBANY — Larry Malone, 59, of Bainbridge has been sentenced to serve 48 months in prison and pay restitution in the amount of $ 25,540,896 to the Southwest Georgia Farm Credit and its insurers, court officials say. The sentences were handed down Monday by W. Louis Sands, U.S. District Judge in Albany.

According to a release by the U.S. Department of Justice, Malone was charged by both the United States Attorney for the Middle District of Georgia and the United States Attorney for Northern District of Florida with conspiracy to commit bank fraud and also for accepting bribes and kickbacks. Both cases were consolidated in the Middle District of Georgia and heard by Judge Sands. Malone entered a guilty plea to the charges on Sept. 22, 2011, court officials say.

The release states that Malone was employed as chief lending officer with Southwest Georgia Farm Credit for more than 20 years, and was serving in that role at the time of the offenses. Officials say that between 2001 to 2008, Malone made fraudulent loans to a variety of borrowers in both the Middle District of Georgia and the Northern District of Florida in the amount of $25,540,896. In return for the loans, the DOJ states that Malone received about $900,000 in bribes and kickbacks from these borrowers.

“After the financial crisis we experienced, no one can legitimately question the importance of pursuing people like Mr. Malone, who commit bank fraud,” said United States Attorney Michael J. Moore in a statement.

The case was investigated by the Federal Bureau of Investigation and the United States Secret Service. Assistant United States Attorney Jim Crane, for the Middle District of Georgia, prosecuted the case.