Former Bank President Convicted of Bank Fraud

BIRMINGHAM—United States Attorney Joyce White Vance of the Northern District of Alabama, Special Agent In Charge Patrick J. Maley, Federal Bureau of Investigation and Comptroller of the Currency John C. Dugan, announced today that HELEN HARRISON PHILLIPS, former President of the First National Bank of Shelby County, was convicted of two counts of bank fraud and one count of obstructing a bank examination.

At trial, the government presented evidence that in October 2000, the defendant used her housekeeper to obtain a loan for $45,000, the proceeds of which were used by Ms. Phillips for her own personal purposes including the payment of $32,518 to the Internal Revenue Service. This loan was renewed and the scheme continued until the loan was repaid in April 2005. Phillips obstructed the examination of the Office of the Comptroller of the Currency’s April 2005 examination of the First National Bank of Shelby County by Office by concealing her involvement with the housekeeper’s loan.

On each bank fraud count, Phillips faces imprisonment of not more than thirty years, a fine of up to $1,000,000, or both. For her role in the obstruction of the bank examination, Phillips faces imprisonment of not more than five years, a fine of up to $250,000, or both. The Court indicated that Phillips will be scheduled to be sentenced in approximately 90 days.

“Officers of banks insured with federal taxpayer dollars have fiduciary duties to comply with applicable federal regulations and not seek to engage in transactions for their own personal benefit,” stated United States Attorney Joyce White Vance.

“Citizens should expect bank executives to uphold the highest ethical conduct and not steal from the depositors for personal gain. Those who violate that trust should expect to be held accountable for their actions,” stated SAC Patrick J. Maley, FBI.

“This verdict shows that efforts to impede the supervisory process by concealing wrongdoing or important facts from examiners will not be tolerated,” said Dan Stipano, Deputy Chief Counsel for the OCC. “The OCC is committed to working with law enforcement to prosecute cases where bank officers obstruct our efforts to ensure the safe and sound operation of the national banking system. The OCC commends the U.S. Attorney's Office and the FBI for their work on this case.”

This matter was investigated by the Federal Bureau of Investigation and Office of the Comptroller of the Currency. Assistant United States Attorneys Lloyd C. Peeples and Melissa K. Atwood prosecuted this case on behalf of the United States government.