Former Bank President Indicted for Bank Fraud

BIRMINGHAM, AL—HELEN HARRISON PHILLIPS, 66, of Columbiana, Alabama, has been indicted today by a federal grand jury in U.S. District Court. United States Attorney Alice H. Martin announces today that PHILLIPS, former President of the First National Bank of Shelby County, was indicted for bank fraud.

According to the indictment, in October 2000, PHILLIPS’ housekeeper obtained a loan for $45,000, the proceeds of which were used by PHILLIPS for her own personal purposes including the payment of $32,518 to the Internal Revenue Service. PHILLIPS also arranged to pay off the outstanding amount of this loan in order to conceal the scheme from the Office of the Comptroller of the Currency (“OCC”), the Bureau of the United States Department of the Treasury that supervises the national banking system. On each count, PHILLIPS faces imprisonment of not more than thirty years, a fine of up to $1,000,000, or both.

“A ‘nominee’ loan is a loan in the name of one party that is intended for use by another. Federal banking regulations exist to protect banks and the general public from such loans,” stated United States Attorney Alice H. Martin. “Officers of banks insured with taxpayer dollars have a duty to comply with the applicable federal regulations and will be prosecuted criminally when they intentionally violate those regulations for their own personal benefit.”

“The OCC examines national banks to ensure that they are operating in a safe and sound manner, and we will not tolerate efforts by bank officers to impede that work.We are committed to working with our colleagues in law enforcement to prosecute cases where a bank officer attempts to conceal wrongdoing or important facts from the OCC’s examiners,” said Daniel Stipano, Deputy Chief Counsel of the OCC.

“This indictment represents the tireless efforts of many people. I want to thank the Office of the Comptroller of the Currency for their cooperation in the investigation of this matter. The FBI will continue to investigate these crimes to assist the U.S. Attorney’s Office in their prosecution of those involved,” stated Carmen S. Adams, Special Agent in Charge, Federal Bureau of Investigation.

This matter was investigated by the Federal Bureau of Investigation, with the assistance of the Office of the Comptroller of the Currency. Assistant United States Attorney Lloyd C. Peeples is prosecuting this case on behalf of the U.S. Government.

Members of the public are reminded that an indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.