HUNTINGTON, W.Va. (AP) — A former vice president of First State Bank's branch in Barboursville has pleaded guilty in a loan scheme.
Thirty-three-year-old Jackie Cantley is scheduled to be sentenced May 19.
The Herald-Dispatch (http://bit.ly/1nNh5Gp ) reports that Cantley pleaded guilty to misallocation of funds on Tuesday in U.S. District Court in Huntington.
Under a plea agreement, federal prosecutors agreed to dismiss two additional counts of misallocation and three bank fraud counts.
Cantley processed a $335,000 loan from the bank to his cousin and the cousin's business in 2012, knowing that the cousin didn't have sufficient collateral. He also didn't disclose their relationship to the bank's loan committee.
Cantley's authorized limit was $250,000 per borrower.
He resigned from his position after the bank began an internal review of loans he'd authorized.
Information from: The Herald-Dispatch, http://www.herald-dispatch.com