Former Coastal Bank Executives Indicted - WMBB News 13 - The Panhandle's News Leader

Former Coastal Bank Executives Indicted

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Three former Panhandle bank executives made an appearance in federal court Thursday.

Sixty-five-year-old Donald Terry Dubose, 39-year-old Elwood Ladon West and 61-year-old Frank Alfred Baker, formerly of Coastal Community Bank, were released on bond in connection to multiple charges in the grand jury indictment unsealed Wednesday.

The U.S. Department of Justice says the execs lied about a $3 million loan that was in default saying it was unsecured in order to obtain a loan from a special government program to cover it along with an additional $750,000. Coastal then defaulted on that loan which was paid back by the FDIC.

The Department of Justice also says to avoid losses, Dubose sold Coastal stocks he and family members owned by -- allegedly misrepresenting them and the state of the bank and providing loans from Coastal to cover their sale.

Coastal Community Bank was closed by the FDIC in 2010.

The next court date is scheduled for February 24th.

The defendants face more than 30 years in prison if convicted.