Dubose guilty on 12 counts in bank case
Published 12:00 am Friday, May 9, 2014
A Covington County native was one of three people convicted in federal court in Panama City, Fla., Wednesday night of crimes related to the operation of the now defunct Coastal Community Bank, The News Herald reported yesterday.
Local native Donald Terry Dubose of Panama City Beach, was convicted for 12 counts including wire fraud, making false statements, and conspiracy. Co-defendant Frank Baker of Marianna, Fla., was found guilty of eight of the counts, and co-defendant Elwood West of Monroeville, was found guilty on 11 of the counts.
The men were executives or directors of Coastal Community Holdings, which owned Coastal Community Bank and Bayside Savings until the banks failed in 2010.
Dubose was the chairman and CEO of Coastal and the second largest shareholder.
They were accused of misrepresenting their eligibility for a loan guarantee under a FDIC program designed to stabilize financial institutions by ensuring access to credit. When Coastal failed to repay a $3.75 million loan, the lender filled a claim that the FDIC paid. Prosecutors said the bankers were motivated by a desire to avoid personal losses.
The three men will be sentenced July 17. Each could be sentenced to up to 30 years in prison.