First State Bank Vice President Made More Than $1.4 Million in Bad Bank Loans
Huntington, W.Va. - A former vice president of First State Bank in Barboursville, West Virginia was sentenced today to five years in federal prison and ordered to repay the bank $1,420,000 in misallocated funds announced United States Attorney Booth Goodwin. Jackie Cantley, 34, previously pleaded guilty on Feb. 18, 2014.
Cantley was a vice president at First State Bank responsible for commercial lending. Between January and September of 2012, Cantley authorized a series of loans, in excess of his lending authority, without making required disclosures about family and personal relationships among him and the borrowers. Cantley improperly authorized these loans without loan applications, adequate financial information or sufficient collateral to secure the loans. Cantley knew that the borrowers were not credit-worthy, but nonetheless authorized $1,420,000 in loans that the bank would not have approved had it been aware of Cantley’s actions. Cantley personally benefitted from at least one loan when proceeds were used to purchase a pizza business in which Cantley was a part owner.
This case was investigated by the Federal Deposit of Insurance Corporation (FDIC), the Federal Bureau of Investigation (FBI), and the United States Secret Service. Assistant United States Attorney Eumi Choi was responsible for the prosecution.
Source: U.S. Department of Justice, Office of the United States Attorneys
