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July 3-- The missing bank director from Montgomery Bank and Trust left a 22-page confession which reflects his depression and despair following multi-million dollar losses which he says bankrupted his investment company and the holding company which was the majority stockholder in the bank.  

Below is the cover letter to Lee Price's confession written sometime before he disappeared June 16.  A suicide note from Price was later found on a Key West, Florida ferryboat.  Investigators don't know if he jumped from boat and drowned or used the note as a diversion for his escape.

{mosimage}  In his confession, Price claims he took no money from the bank, but accepts personal responsibility for fraudulently covering up the losses. Meanwhile, the U.S. Attorney in New York has filed criminal embezzlement charges against Price estimating he defrauded investors out of $17 million and may have fled on his boat to Venezuela.

Date: June 2012

Confidential Confession For Regulators

PFG, LLC and PFGBI, LLC Summary

I apologize in advance for the lack of structure, grammar and harmony of thought.

PFG, LLC and PFGBI, LLC (Montgomery Bank and Trust Investment) are the two investment vehicles that are essentially bankrupt.   I realize that time is up, and that there is no way that I can work my way out of the mess that I have created.   I have done all I can do to salvage the situation. 

I truly have worked day and night to try to make things work out.  It is difficult   to be productive and think correctly when stress and anxiety are so great.  My worst fear has come upon me.    I have not been successful at working  my way out of my horrendous financial mistakes.  The ability to macro manage, much less micro manage such a scenario has become impossible for me. The nightmares and anxiety seem to never stop. My rnind is completely gone. The steps that have led to this point are complicated.

I am 100% responsible for the losses I created.   I blame no one but myself.   Relating to PFG, LLC Investments, I falsified statements with false returns.  I created false financial statements and defrauded investors, regulators, other   work associates and bank employees.   I lost money through trading and various investments including the Montgomery Bank and Trust securities portfolio.

 I hid many things fraudulently and deceptively, to try and give myself more time to pull some positive returns together. I had hoped that positive equity trading returns could offset the losses incurred by the bank and losses incurred in bad real estate. But things got worse and worse. The compounded losses overcame me with shock.  I lost all focus and ability to trade under such extreme pressure to perform. It was only me and me alone. No one else had any knowledge of any fraudulent activity. 

 I estimate it is about 20-23 million dollars in losses excluding the Montgomery  Bank and Trust co-mingled Goldman Sachs securities account (about 15 million) introduced by Northpoint Trading Partners in Alpharetta, Georgia.  I also deceived Northpoint Trading partners and none of the employees there had any knowledge or understanding of what happened.  The Bank securities account was basically opened by accident.   I had hoped that we could set up a bond account with Goldman Sachs but the minimums were too   high to avoid higher commission and get better prices. This was discovered after the fact in February 2011.

My delay in confession was only to try and make things better than they are...to try and improve the situation even if by a little. To my even greater sadness, I have only made things worse.  I worked even to the end to try and improve the situation even if it was by a small amount.   My anxiety, the great pressure and lack of confidence only made my decisions more irrational, foolish    and hasty.   My spirit became broken even though I tried to persevere until the end to improve the situation for investors.  

 It really turned south when I got involved in the bank deal.  I was in way over my head even though I was told my other professionals that I need to trust those with the experience in banking to handling the banking business.  Honestly, I had no idea how to handle the complexity of problems at the bank.  The bank literally began absorbing my mental capital from the very beginning of the investment into the bank on December 31, 2010. It never quit to the very end as every financial reports got worse and each time my stress level move to higher and higher levels. The losses embedded in the bank's portfolio were much greater than anyone knew or understood.    No one was really able to clearly identify the amount of losses.  

There were many attempts by management and others, but no one ever got it right on appraisals on collateral or the cash flow of the borrowers. We were told over and over again that we would get good prices for the collateral even if we had to take the properties back-unfortunately, this was not true with any piece    of property.   Every month was more and more disappointing and deflating as the bank was just too deep in a hole. I did not understand the how bad things really were. 

When purchasing the bank, the current and former management believed that    we could make it and turn things around. I would have never done the deal if I had any idea of how bad things were. Each problem loan and problem issue at the bank compounded to the very end.  The problems were so immense, and I was too embarrassed to admit defeat and mistakes. Hiding problems cause mestasization. Pride is a terrible enemy in the investment world and in life. It was my pride that kept me from admitting failure. I kept trying to find solutions and work things out when it was an impossible task.   Of course.., the only solution was to bring more capital or increase capital to absorb the problem loans.

Those looking for answers need to understand that I tried to always believe    there is a miracle solution..that things can be cleaned up and made whole.  I held to this hope to the very end and compounded mistakes with fraud and deceit for which I am totally ashamed.  No need to talk about "should of or could of." There is no one else to blame as it rest totally on myself.

To be clear, nothing has been taken...only lost through stressful periods of    trading and bad investments.    My depression and discouragement have driven me to deep anxiety, fear and shame.  I am emotionally overwhelmed and incapable of continuing in this life. There is sadness of leaving this world, but most painfully, it is leaving with a life full of regrets and not being able to make restitution to all my clients.

I want to say that I am deeply, deeply sorrowful for the pain which I have    caused to my clients, regulators, my family and associates.   Not to undermine  any other investors or clients and the wrong that I have committed against them, I need to emphasize with all my heart, all sincerity, that l apologize to Mike Gunter, Steve Fletcher, Justin Zegalla and Kathryn Giardina.  Each of these worked tirelessly and completely innocently to help me build various parts of the business with no knowledge of any deceit or fraudulent activity. 

Other people that I involved and kept at a distance were Beccy Champion, Trae Dorough and the accountants of Montgomery Bank and Trust. These people had no idea of the fraud and are very good people who were deceived by me. The management or directors of Montgomery Bank and Trust had no idea what was going on either They trusted me, and I have let them down worse than ever;  None of these people had any knowledge of the fraud.  They had full confidence in me and for this I am most ashamed and heartbroken.  

I have broken the laws of our land and for this I am deeply remorseful and regretful.   It is the pain which I have caused that makes life too difficult to exist. Waking up in my world has no appeal whatsoever.   I did work to the end trying to find a solution and at the same time, carrying the heaviest of guilt, sorrow and shame.  The difficulty of this time is too hard to explain. I don't deserve any forgiveness or mercy and do not expect it.   I leave this world in shame, a ruined name and deep humiliation.   I am very, very sorry and regretful.   I cannot emphasize enough how very sorry I am for hurting clients and investors.   I am completely distraught and depressed over the hardship and pain I have caused clients.  I really gave all my best efforts to try and make things better or completely right for each investor. My time has just run out. I die and will be buried in shame and regret as I should. I have spent all my energy and I have lost all my will to continue to fight or live. There has been no hope and no beauty In this horrible valley...there has been no peace in this pain.

At this point, it would be better for me to exit this world and not cost the tax payers of our great country anything extra.  I have lost my name...my integrity. It is now over.   To my great shame and sorrow, I leave my family and loved ones with nothing but bad memories of a maximum stressed out husband and father.                                                                                                                                        

With Deepest Regrets, Sorrow and Sadness,

Aubrey Lee Price