Surprise experts could delay trial of former bankers

PANAMA CITY — The trial of three bankers charged with fraud for allegedly duping the Federal Deposit Insurance Corporation (FDIC) of millions could be delayed, following Tuesday’s pretrial hearing.

Prosecutors of the case against Donald Terry Dubose, Frank Baker and Elwood West called requests to allow testimony from two expert witnesses a “calculated decision” by the defense to delay the trial and divert their focus from proving the bankers intentionally defrauded the U.S. government. Prosecutors only learned of the motions to allow the expert witnesses on Friday and Monday.

U.S. District Court Judge Richard Smoak initially barred testimony of one expert witness, citing local rules for a five-day notice, before defense attorneys pleaded the dire nature of admitting the “critical evidence” he would bring to light.

“In this case, you couldn’t have more critical evidence,” said Edward Garland, attorney for West. “If what our expert witness is saying is true, [the government] has no evidence a crime was committed.”

None of the six defense attorneys representing the bankers would comment on the identity of their expert witnesses.

Assistant U.S. Attorney Gayle Littleton compared the last-minute disclosure to a “one-two punch” by the defense in an attempt to get a continuance of Monday’s trial.

“If the court lets it in, there will be no way we would be prepared by Monday,” Littleton said.

Depositions of the experts will occur Thursday by telephone. If they are allowed to be admitted as evidence, Littleton said she will be asking for a continuance of a week to gather expert witnesses to counter the defense.

Dubose, West and Baker have been charged with conspiracy to commit wire fraud against the FDIC, seven counts of wire fraud, three counts of lying to the FDIC and aiding and abetting a false claim against the United States. Dubose and West were executives with Coastal Community Investments, a holding company for Panama City Beach-based Coastal Community Bank and Port St. Joe-based Bayside Savings Bank. Baker was Coastal’s attorney and largest shareholder.

Smoak advised counsel to be prepared for an additional pretrial hearing Friday.

“We’ll see what this guy says and if it’s a big deal,” he said. “God knows it wouldn’t be the first time a high-priced expert witness failed to meet expectations.”