Hiers Indicted on Federal Bank Fraud; Trial Date
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Former Liberty Co. 50¢ CLJ includes THE CALHOUN-LIBERTY News Commissioner will tax .com be honored Saturday by Teresa Eubanks, Journal Editor He only served one four- OURNAL year term as a Liberty County J Volume 31, Number 28 • Wednesday, July 13, 2011 Commissioner, but during that time he made his mark as he relentlessly sought ways to curtail careless spending of taxpayer dollars. Hiers indicted on federal And for that, the late J.W. “Fiddler” Eubanks is being honored with a plaque bank fraud; trial date set in his memory at the by Teresa Eubanks, Journal Editor agreed to cooperate fully with the Liberty County Road A grand jury has indicted a U.S. Attorney’s office and on Feb. Department on S.R. Bristol man on federal charges of 15, 2006, was sentenced to one day 20 Saturday morning conspiracy to commit bank fraud and in prison followed by five years of at 10 a.m. making false entries into the books supervised release and was ordered “Fiddler was and records of a federally-insured to pay $6 million in restitution. He the biggest reason bank. is expected to be a witness at the w e g o t t h a t The indictment against former upcoming trial. maintenance department out there,” said Kenneth C&L Bank president Jed Hiers, 50, Hiers sued The Bank and six Green, who served as a commissioner during Eubanks’ was filed July 5. people, including three local bank 1996-2000 term. The two men contacted the St. Joe He is charged with one count of employees - Vicki Montford, Tracy Company and let them know the county was in need of conspiracy to defraud The Bank, Gregg and Regina Nobles - alleging property to locate a new Road Department office and also doing business as C&L Bank, in breach of contract and defamation maintenance building. Within a short time, the county Bristol, Florida, and nine counts of was able to acquire ten acres. after he was placed on administrative It was Eubanks’ idea that the new site should include making false entries into the books leave and later fired. He sought fuel pumps so that the county could save money by and records of the bank. $6 million in punitive damages, purchasing and maintaining its own supply of fuel. The indictment alleges that $900,000 in compensation for three Two commissioners were against the idea but the late between 1999 and 2004, Hiers FORMER C&L BANK years’ salary and benefits plus Earl Jennings supported Eubanks and Green, resulting conspired with others to conceal PRESIDENT JED HIERS. attorneys’ fees. in a 3-2 vote. the true financial picture of the In the May 2005 trial, bank Eubanks, himself a former gas station owner, knew it bank from bank examiners and the his innocence,” said Hiers’ attorney, employees testified that some loans could make a big difference financially for the county. bank’s own management. According Thomas M. Findley, were processed that had never “Wilhoit was a good businessman. He knew if you to a news release from the U.S. A Sept. 6 trial date has been set but been signed and then used to pay got your own tanks, you got fuel a lot cheaper,” said Attorney’s Office in Tallahassee, Findley said, “We will do everything current loans and overdrafts, that Green, who estimates that the change saved over 40 Hiers is alleged to have made we can to get more time. We intend spreadsheets from one business were cent a gallon in off-road use fuel for county tractors loans and extensions of credit to to move for a continuance.” used in a loan package for another and other equipment. borrowers who were unable to repay, Findley added, “It’s so old it with only a name change and that Green said Fiddler kept a close eye on money and and that he attempted, through a hardly seems fair to resurrect the Hiers had forged Benjamin Watson’s saved the county $8,000 a year after a motion he made variety of means, to conceal the charges.” name on a promissory note for over to advertise for insurance bids passed. borrowers’ actual indebtedness from The case is being prosecuted $1.5 million. “He wanted us to run the county like you would run bank examiners. The allegations by Assistant U.S. Attorney Karen Hiers’ trial was under way in your own business,” Green said. include charges that Hiers falsified Rhew-Miller. Bristol when it came to an abrupt Eubanks, who died Jan. 16 at the age of 81, owned borrowers’ financial statements, Count I of the indictment lists 10 halt the day after Watson pleaded and operated Pelt’s Department Store in Blountstown for that he made loans to third parties “overt acts” including the creation guilty to federal charges. Judge many years. He was also a past owner of the Apalachee for the purpose of paying off the of false documents presented as Michael Miller declared a mistrial Restaurant and True Value hardware store, and was the loans of other borrowers, and that he the personal financial statement of but declined to explain other than first person in the state to produce and retail catfish. made false statements in response to Benjamin Watson of Cordell, GA. to say, “It was a matter agreed upon The bronze plaque, which reads, “In memory of audit questions of a bank employee Watson, who took out millions between the parties.” Attorneys on J.W. “Fiddler” Eubanks, honoring his accomplishments examining existing loans. of dollars in loans from the Bristol both sides refused comment, leaving for the Liberty County Road Department,” will be “There will be a trial. He will branch of The Bank, pleaded guilty the impression that a settlement had permanently displayed at the road department. contest the charges and maintain to bank fraud in May of 2005. He been reached. Family Dollar opens its doors in Bristol Couple lose $3,620 The Family Dollar in Bristol held its grand opening on in online loan scam Saturday, July 9 with a rib- by Teresa Eubanks, bon-cutting ceremony. Con- Journal Editor struction began on the 8,000 A Bristol couple square foot store in early in their 20s got an March of this year. The store expensive lesson in is located on S.R. 20, across financing after being from the Bristol Piggly Wiggly. scammed by an online Pictured from left: Bristol City loan offer, losing $3,620 Clerk Robin Hatcher and City in the process. Council members Ed Botting, Faced with two car payments and other bills Steve Cutshaw and Mitch after her husband lost his job, the wife began Willis are shown with County looking for a quick way to get a loan last month. Commissioners Jim Johnson She agreed to share her story if her name was and Davis Stoutamire. Shown not used. in front is Assistant Manager They spent $1,620 in an attempt to get a Rachel Kilpatrick and Store $5,000 loan. Midway through the process, Manager Mildred Kent, who they were told they qualified for a $10,000 look on as Florida Tropical loan, which prompted them to send two more Palm Modeling Queen Hulya payments after being assured the money would Reisoglu cuts the ribbon. JOHNNY EUBANKS PHOTO See ONLINE SCAM continued on page 2 Sheriff's Log...2 News from the Pews...3 Calendar....4 Commentary...6, 7 Meet a dog named Johnny Cash...9 Wedding dates set for 3 couples... 10 Birthdays...11 Gardening...5 & 14 Obituaries...15 Classifieds...16 & 17 Page 2 THE CALHOUN-LIBERTY JOURNAL JULY 13, 2011 ONLINE SCAM be wired to their bank account by June 27. continued from the front page advance fee loan schemes claim that payment of the fee It wasn’t. will “lock you into the loan” so that you will not lose She said it started when she went to loancity.com and out to others competing for loans. Such hard sell tactics filled out an application. “They send out your information should be a red flag from doing any further business with to different lenders,” she said. She was soon contacted the loan broker, especially if the company encourages you by a company called Ameristate United Financial and to send the money that day. told they had been approved for a $5,000 loan. But first, Legitimate credit grantors will not guarantee that they were told they needed to send a security deposit of you will qualify for a loan, but illicit advance fee loan $810 via Western Union. companies will either promise or strongly suggest that “We did that, then they said the company that did the loan will be provided in exchange for an up-front fee. the loans said their insurance wanted an extra security Banks and other financial institutions simply will not risk deposit,” she explained. “They said we were paying ahead qualifying you for a loan without extensively researching and wouldn’t owe a payment until later.” your credit history and likelihood of being able to repay Then the couple was told the loan company, which was phone lines had been disconnected. the debt, according to the website. said to be in Spain, had withdrawn their offer. After phone contact failed, she returned to the You should be wary of any loan broker who tells you “They said they could give us our money back or we company’s website and discovered it had been taken that the lender can make such a decision by reviewing could try for a $10,000 loan,” the wife said.