Posted: Apr 5, 2013 8:13 AM by AP
A federal judge in New Orleans has sentenced a former president of a Hammond bank and a Covington man to prison.
The Advocate reports U.S. District Judge Nannette Jolivette Brown also ordered Reginald R. Harper, former president of First Community Bank, and Troy A. Fouquet to pay $570,955 in restitution plus interest to the bank.
On Thursday, Brown sentenced Harper to two years in prison and Fouquet to 18 months.
Prosecutors say Harper loaned more than $2 million to Fouquet and his companies. They allegedly devised a scheme to use sham loans to avoid reporting the delinquency of the loans Harper made to Fouquet.
Prosecutors say the scheme resulted in severe financial losses for the bank.