PANAMA CITY — All three bankers were convicted Wednesday night of various crimes connected to their running of the now defunct Coastal Community Bank.
Defendant Terry Dubose was convicted of all 12 counts brought against him by federal prosecutors, according to officials at the U.S. Federal District Court. Those counts included wire fraud, making false statements and conspiracy. Frank Baker was found guilty of counts 1, 3, 4, 7, 8, 9, 11 and 12 and not guilty on the other counts. Elwood West was found guilty of every count except count one.
The men are expected to face sentencing in July.
The three men were executives or directors of Coastal Community Holdings, which owned Coastal Community Bank and Bayside Savings until the banks failed in 2010.
They are accused of misrepresenting their eligibility for a loan guarantee under a hastily created FDIC program designed to stabilize financial institutions by ensuring access to credit. When Coastal failed to repay a $3.75 million loan, the lender filed a claim that the FDIC paid.
Jurors began deliberating about 2:30 p.m. after hearing closing arguments from attorneys for West and Baker. The verdict was announced late Wednesday
During closing arguments, Ed Garland, an attorney representing West, showed jurors photographs of the witnesses who testified to the strength of his character. West has spent a lifetime building a reputation that is now threatened by what Garland described as an “imaginary crime.”
“This is an imaginary crime because they’ve taken a mistake and turned it into one,” he said.
Assistant U.S. Attorney Gayle Littleton responded that even good people commit crimes.
“You are not being asked to decide whether the people are good people or bad people,” Littleton said.
It was not clear Wednesday night whether jurors would deliberate until they reach a verdict or suspend deliberations at some point.