Reopen the can of worms

The pandemic closure has slowed the progress of the FNBC grand jury investigations. Remember this is a very long thread to pull on, though. And with enough time, persistence, and, well, pulling, the thread can connect to almost anyone who is anyone in the New Orleans area political/non-profit/business upper class. Here is who may be next on the line.

Additional borrowers could also get swept up in the case if prosecutors believe they committed fraud to get their credit extended. Among those whose loans the government is scrutinizing is businessman and former longtime St. Bernard Parish prosecutor Glenn Diaz, according to sources familiar with the probe.

Diaz, who slipped quietly out of public life after a failed campaign for district attorney in 2014, was in arrears on millions of dollars in First NBC loans that the feds consider dodgy. Another possible target is Mississippi developer Gary Gibbs, the recipient of the loans that were flagged by the FDIC in its civil allegations against Calloway. Those loans alone totaled $123 million when the bank collapsed.

The problem, though, is prosecutors have only so much time to reel everyone in. The statute of limitations on many of the potential charges here is only 5 years and we're 2 years, plus some into the story now. But the grad jury can't operate during the COVID shut down. So, while we know a lot of wealthy businesspersons have been leading the charge to "reopen Louisiana" in recent weeks, maybe a few of them aren't in such a hurry.