Thursday, August 15, 2013

Peoples Bank of the South to Merge With United Ms. Bank

ROXIE, MS (FCNews) - United Mississippi Bank located in Natchez, Mississippi has made application with the Federal Deposit Insurance Corporation , Washington, D.C. for its written consent to merge with Peoples Bank of the South, located in Bude, Ms. This action would leave United Mississippi Bank being the majority owner.  It is contemplated that all the offices of both of the banks will continue to be operated as normal.  Based on Section 18(d) of the Federal Deposit Insurance Act, unless there is no legal opposition to the merger by August 30, 2013 then the merger will take place August 30, 2013. Any person desiring to know more about the non confidential merger application filed in the regional office of the FDIC may do so during normal business office hours by request at either offices of United Mississippi Bank in Natchez Ms or Peoples Bank of the South in Bude Ms. 

Sources say that the merger talks between the two banks began after  Larry Barnette Hill, 58, of Meadville, Mississippi, pled guilty on April 15, 2013 in U.S. District Court to bank fraud and money laundering.  U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen made the Hill public announcement. 

Larry Barnette Hill served as CEO of People’s Bank of the South in Bude, Mississippi. From 2004 through 2012. Investigative reports indicated he fraudulently withdrew money from the bank’s Payroll Clearing Account and deposited those funds into the bank accounts of his family members and into a “shell” bank account he created for his personal benefit and the benefit of others. Hill also used the bank’s credit card for personal expenses without the bank’s authorization, and took third-party checks issued in the name of People’s Bank to make payments on a personal loan that he held at another bank and to embezzle funds into other accounts he owned and controlled for his own benefit or the benefit of others.

Hill concealed his fraudulent activities by creating false general ledger tickets which appeared to be for bank expenses in order to disguise his fraudulent activities within the budget of the bank. He also falsely inflated the bank’s budget each month in order to disguise additional money he was embezzling. The total amount of loss in this case is still being calculated, but is estimated to be from $600,000 to over $1 million.

Mr. Hill was sentenced in federal court July 16, 2013  to 78 months in federal prison, followed by five years of supervised release for money laundering and bank fraud.   Hill was also ordered to pay $1,243,703 in restitution to People’s Bank of the South.

Source: FCNews Staff/ Public Records / FBI Memo-announcement
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