3 Bankers Indicted

Published: Thursday, August 8, 2013 at 11:55 AM.

So, the indictment says, the bankers convinced the FDIC that they had not used any collateral on the initial loan, CenterState loaned Coastal the money to repay its debt, Coastal failed to repay CenterState and in August 2010 the FDIC paid out nearly $4 million to cover Coastal.

In the meantime, as Coastal continued to deteriorate, Dubose duped investors into buying his stock in the bank by misrepresenting the nature of the stock and the financial health of the bank. Coastal even loaned investors money to buy his stock.

After the banks failed, Dubose and his wife sued the FDIC, claiming, among other things, they were owed a pension. The suit was dismissed.

The three men are charged with conspiracy to commit wire fraud against the FDIC, seven counts of wire fraud, three counts of making false statements to the FDIC and one count of aiding and abetting a false claim against the United States. Each count of conspiracy and wire fraud carry maximum prison sentences of 30 years, and the other counts are each punishable by up to five years in prison.

Assistant U.S. Attorney Gayle Littleton will prosecute the case.



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