Ray M. Mubarak, 54, Knoxville, Tennessee, Dianna Mubarak, 52, Knoxville, and Blythe Bond Sanders, III, 35, Norris, Tennessee, were arrested by federal agents for allegedly participated in a bank fraud conspiracy involving fraudulent loans exceeding $6.7 million.
Following their surrender to federal authorities, an initial appearance was held in U.S. District Court in Knoxville before the Honorable H. Bruce Guyton, U.S. Magistrate Judge, at which time the indictment was unsealed and the defendants were apprised of the charges. All three pleaded not guilty to the charges. Trial has been set for May 5, 2015, in U.S. District Court, Knoxville.
The details of the charges are outlined in the 39-page indictment which is on file with the U.S. District Court for the Eastern District of Tennessee at Knoxville.
The indictment alleges that Ray M. Mubarak, Dianna Mubarak, and Sanders engaged in a conspiracy to defraud five banks spanning from 2007 through 2011. The total face value of the fraudulent loans exceeded $6.7 million. Ray M. Mubarak was also charged with multiple counts of engaging in unlawful monetary transactions greater than $10,000 in bank fraud proceeds.
The investigation leading to these charges was conducted by IRS—CI and the FBI. Assistant U.S. Attorney Matthew T. Morris represents the United States.