Tyler

By CASEY KNAUPP
Staff Writer

Brent Steven Lemons, the former president of Tyler's Bank of America, has been ordered to pay back more than $4 million he swindled from a local customer.

The 52-year-old Lemons pleaded guilty in a Tyler federal court on Aug. 20 to two counts of fraud for stealing money from the account of Venna C. Davis Stubbs.

Although his 19-count indictment alleges Lemons stole more than $408,000 from his custumers, a panel of arbitrators for the Financial Industry Regulatory Authority (FINRA) awarded Ms. Stubbs $4,259,436 in connection with her claims against Lemons.

The award was received Aug. 27, Ms. Stubbs' attorney Bryan Forman said Wednesday.

"At the time of entrusting her money to Mr. Lemons, Venna relied on Mr. Lemons like she would a family member or the most trusted of advisers," Forman said in a prepared statement. "Lemons knowingly breached that trust, lied to her and stole her money so that he could gamble and lead a lavish lifestyle. What he did to my client is truly dishonorable -- he should pay the award and he deserves to lose his freedom."

Forman said Lemons did not attend the arbitration.

Lemons remains out of jail on bond pending his sentencing after he pleaded guilty to interstate transportation of stolen money and engaging in a transaction with criminally derived property. He faces up to 10 years in prison for each charge.

In federal court documents, the defendant acknowledged he withdrew $80,000 from the account of Mrs. Stubbs on two occasions and transferred it to the Boyd Corporation, the owner of Sam's Town Casinos in Shreveport, La.

Mrs. Stubbs attended the plea hearing in U.S. Magistrate Judith Guthrie's court and said Lemons did not appear remorseful and has never apologized to her. In the prepared statement, she said "� He not only stole most of my money, but he hurt me. I don't think I will ever completely trust someone again � I am glad Brent will go to prison -- he deserves it. I hope that this prison term is appropriate for what he did to me and others."

Regarding her arbitration award, Mrs. Stubbs said "I wish Brent had been there; I would have liked to ask him some questions. Although I doubt I will ever see a dime from the arbitration award, it is satisfying that the arbitrators found Brent to be a fraud, that the U.S. Government found Brent to be a crook, that Brent has publicly admitted to stealing my money and pled guilty like a common criminal."

Mrs. Stubbs thanked Forman, the U.S. Attorney's Office, the FBI and the IRS.

Forman said his client alleged that Lemons stole almost all of her money out of her brokerage and bank accounts and frequently told Mrs. Stubbs her money was safe and was being invested according to her wishes. The woman relied on Lemons during and after her divorce for financial and personal guidance, Forman said. Lemons sent most of Mrs. Stubbs' stolen money to casinos to cover about $1.4 million in gambling losses, he said.

The arbitration panel found that Lemons' conduct amounted to fraud under the Texas Securities Act -- common law fraud, common law theft and statutory fraud.

Lemons was named president of Bank of America's Tyler market in September 2005 and was fired April 23, 2007, shortly before his indictment. He worked as a full service financial adviser for Banc of America Investment Services Inc. beginning in 2004. Before joining Bank of America, Lemons was an investment adviser for 22 years in A.G. Edwards & Sons Inc. and became manager of its Tyler offices in 1997.

Two victims, Tammy and Cindy Mays, of Tyler, were awarded $1.3 million in April by the FINRA for their claims against Lemons. They allege Lemons, their longtime friend and stockbroker, defrauded them of their family savings.

Lemons is being sued in Smith County courts in separate lawsuits filed by Mrs. Stubbs and the Mays, according to county records.

Forman said Lemons has been suspended from the brokerage industry by FINRA and is being sued by the U.S. Securities & Exchange Commission.

Forman said he represents several former customers of Lemons.

"We are pursuing other claims against Lemons, AGED and Bank of America; however, it is inappropriate for me to comment on pending matters," he said.