Ex-Wachovia VP accused of 9-year conspiracy to fleece bank of $11M in false invoices

Ex-Wachovia VP charged in 9-year, $11M bank scam

CHARLOTTE, N.C. — A former Wachovia Bank vice president faces federal charges that he conspired with small-business owners to fleece the big bank out of $11.2 million.

Terry Scott Welch, 47, of Mooresville was charged with mail fraud and tax evasion. Federal prosecutors say Welch had been bilking the Charlotte-based bank for nine years.

Welch oversaw the payment of invoices submitted by outside vendors who provided goods and services to Wachovia, authorities said. He got owners of a string of businesses to turn in fake invoices for goods and services the bank never received, an indictment filed Thursday alleged.

Welch’s attorney did not respond to requests for comment Friday. The bank declined comment.

John Cousar Jr., 47, of Albemarle and Delmar Dove, 59, of Charlotte also were charged with mail fraud and tax evasion. Attorneys for both men said Friday they would plead guilty in agreements negotiated with prosecutors.

Welch is accused of receiving nearly $3.4 million in kickbacks from Cousar and Dove through false invoices claiming that Wachovia owed for fictitious moving and delivery services.

The two men kept millions more for themselves as a result of the scheme that ran from about 2000 through November 2008, soon after Wachovia announced it would be bought by Wells Fargo, prosecutors said. Prosecutors did not say how the scheme was discovered.

“John feels terrible about getting involved in this, and he’s cooperated fully with the government in their investigation,” said Cousar’s attorney, Deke Falls.

An attorney for Dove said the landscaping and concrete company owner took responsibility for his actions.

“He made poor decisions in his dealings with Scott Welch and, through Mr. Welch, with Wachovia, and understands the serious consequences of those decisions,” Jake Sussman said.

Two other business owners described in the federal indictment as unindicted co-conspirators provided Welch with renovations to his home and those of his relatives, as well as golf carts, televisions, jet skis and gas grills, all billed to Wachovia.

The charges carry maximum penalties of 35 years in prison and fines of up to $1.25 million.