Marianna attorney Frank Baker, 61, along with Terry Dubose, 65, of Panama City Beach and Woody West, 39 of Alabama, has been charged by a federal grand jury with one count of conspiracy to commit wire fraud against the Federal Deposit Insurance Corporation (FDIC), seven counts of wire fraud, three counts of making false statements to the FDIC, and one count of aiding and abetting a false claim against the United States.
Baker was an attorney for Coastal Community Bank and Coastal’s largest shareholder. The bank failed three years ago. Dubose was the Chairman and Chief Executive Officer of Coastal and the second largest Coastal shareholder. West was the Chief Financial Officer of Coastal and a Coastal shareholder.
The indictment alleges the defendants made false certifications to FDIC regarding a $3,000,000 loan with another bank. Alleged misrepresentations by the defendants led to another $3.75 million loan guaranteed by the FDIC and Coastal later defaulted.
Desiring to avoid losses to himself and his family as Coastal’s financial condition deteriorated, Dubose allegedly fraudulently sold and converted Coastal stock owned by him and his family members to unwitting investors by misrepresenting the nature of the stock, by misrepresenting Coastal’s financial condition, and by providing loans from Coastal Community Bank to finance the purchases of Coastal stock.
The trio could face 30 years in federal prison for each count of conspiracy and wire fraud.