Department of Justice Seal


FOR IMMEDIATE RELEASE	CRM

THURSDAY, MARCH 26, 1998 (202) 514-2008

TDD (202) 514-1888

MISSISSIPPI BUSINESSMAN

INDICTED IN BANK FRAUD CASE


WASHINGTON, D.C. -- A federal grand jury has indicted a Mississippi businessman who allegedly conspired to defraud the now defunct Bank of Edwards of more than $2 million, the Justice Department announced today.

The 53-count indictment, returned yesterday and unsealed today in Jackson, charges that Richard E. Blackmore, 41, together with Henry L. McNair III, the former bank's president, defrauded the bank from May 1993 to December 1994.

The indictment alleges that Blackmore, who has ownership interests in Environmental Remediation Technology Inc. (ERT), Enretech Inc. and Automated Business Services, aided and abetted McNair with submitting more than 40 separate false loan applications. The applications were submitted to obtain funds that were used to cover bad loans from another customer of the bank and for the use and benefit of Blackmore himself. It also charges that the people whose names were listed on the false loan applications had no intention or ability to pay the loans.

McNair, 49, pleaded guilty to bank fraud charges in September 1995 and was sentenced to 23 months in prison.

The Bank of Edwards, a federally insured financial institution, was subsequently bought by the Merchants Bank of Vicksburg and later dissolved.

Blackmore today pled not guilty to all charges and was freed on a $50,000 personal bond. Trial is set for June 1.

The maximum penalty for violating the misapplication statute and making false entries is 30 years in prison for each count and a $1 million fine for each count

The prosecution of this case is being handled by trial attorney Peter A. Frandsen, of the Justice Department's Fraud Section. The investigation is being handled by the Jackson office of the FBI.

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