Former FBI agent found guilty of wire, bankruptcy fraud

Thursday, December 2, 2010 at 6:15pm

Former FBI Special Agent Darin Lee McAllister, 44, of Brentwood, was found guilty Thursday of 15 counts of wire fraud and three counts of bankruptcy fraud by a jury in United States District Court in Nashville.

Sentencing has been set for March 4, 2011.

McAllister faces a total of 315 years in prison and $6.5 million in fines. The maximum penalty for each violation of the wire fraud statute is 20 years in prison and a $250,000 fine. The maximum penalty for each count of bankruptcy fraud is five years in prison and a $250,000 fine. Each count also carries a mandatory $100 special assessment. The court may also order restitution to any victims of the fraud.

The jury failed to reach a verdict on the bank fraud charge.

McAllister devised a wire fraud scheme to defraud SunTrust Mortgage Inc. in connection with the purchase of rental properties totaling $1.25 million in May and July 2006. He also devised a scheme to defraud SunTrust Bank in connection with a $100,000 line of credit and making three false statements in connection with his subsequent bankruptcy petition in July 2009.

“The result in this case shows that no one is above the law,” U.S. Attorney Bill Killian said. “The actions of this federal law enforcement officer should not tarnish the good reputation of the FBI or the many fine men and women in federal law enforcement. However, anyone who violates the laws of the United States will be prosecuted regardless of his or her position.”

The U.S. Attorney for the Eastern District of Tennessee handled the prosecution of the case so as not to pose a conflict of interest with the U.S. Attorney's Office for Middle Tennessee, which works closely with the FBI office to which McAllister was once assigned.

According to Killian, the indictment and subsequent conviction of McAllister was the result of an investigation by the Office of the Inspector General, United States Department of Justice, with the assistance of the United States Bankruptcy Trustee's Offices in Chattanooga and Nashville.

Assistant U.S. Attorneys Gary S. Humble and Steve Neff represented the United States.