Who Knows Adam M. Teague?

Answer: The FDIC, among others. On August 11, 2011, The Federal Deposit Insurance Corporation (FDIC) signed a notice initiating the proceedings to determine whether Former Vice President of Appalachian Community Bank in Ellijay Adam M. Teague should pay $1, 324,220.The notification is manifold. The eleven page order serves as a 1) Notice of Intention to Prohibit From Further Participation 2) Notice of Assessment of Civil Money Penalty 3) Findings of Fact and Conclusions of Law 4) Order to Pay 4) Notice of Hearing. In the document, Teague is accused of using

“his position with the Bank to misappropriate more than $10 million in Bank funds and transfer them to his related interest,” where “his related interest used those funds to purchase properties that a Bank customer intended to purchase…His related interest immediately resold those properties to the Bank customer at a substantially higher price resulting in a personal gain to Respondent (Teague) of $1,324,220.”

The Notice includes Civil Money Penalty. This is a legal request or recommendation that Teague pay back the $1,324, 220 he gained from a series of business transactions. According to the notice, these transactions are classified in the document as “conflict of interest,” although this is only one in a string of charges against the former vice president. The notice states that in 2007, while Teague was employed at Appalachian Community Bank in Ellijay, he was simultaneously 50 percent owner of a limited liability corporation called Soak Creek Preserve Partners ( SCPP). Appalachian made a seemingly indirect loan to SCPP of $ 8,038,500 for the purchase of 5043 acres of land in Tennessee. A series of transactions ensued, where the land was later sold significantly above market value. Teague reaped $ 1,324,220 from the deal. Now, in the wake of his alleged misconduct, the former vice president is expected to repay the amount in full. However, if Teague disputes these allegations and feels the order unjust, he has the option of requesting a public hearing, where he has the opportunity to defend himself against these findings.

In a press release yesterday, the FDIC disclosed its August Enforcement Actions. And, although the notices against Teague were listed, no administrative hearings were scheduled for September. FYN will continue to investigate the situation and follow this story as it develops.