Alice H. Martin, United States Attorney for the Northern District of Alabama; Charlene B. Thornton, Special Agent in Charge, Federal Bureau of Investigation; and C. Andre Martin, Special Agent in Charge, Internal Revenue Service, announce that BRYANT M. HOVIS, age 36, of Madison, Alabama, pled guilty today to two counts of a federal indictment on charges of conspiracy to defraud North Alabama Bank and filing a false tax return.

According to Martin, during 1998 and 1999, HOVIS was vice president and loan officer at North Alabama Bank, Madison, Alabama. In November 1998, January 1999, and May 1999, HOVIS agreed with a customer to process three loans for the customer at his bank, using a false financial statement. The defendant knew the financial statement was false in a material manner when he presented it to the loan committee, that the net worth of the customer was materially overstated. Based on the false financial statement, the bank loan committee approved the loans which exposed the bank to loss up to $1.5 million.  During the period, the customer made payments to HOVIS of about $10,000 per month totaling over $80,000. North Alabama Bank lost approximately $839,257 after the customer defaulted on the loan. HOVIS also failed to report over $40,000 of the payments he received from the customer on his 1999 federal income tax return, a return he signed under penalty of perjury and filed with the Internal Revenue Service.

Martin stated, "We intend to hold bankers accountable when they conspire with customers to defraud banks. This is the fourth conviction in this investigation and more charges are anticipated."

HOVIS could receive a maximum of eight (8) years in prison and a fine of up to $500,000. Sentencing will be scheduled before United States District Judge Edwin L. Nelson.

This case was investigated by Special Agents of the Federal Bureau of Investigation and the Criminal Investigation Division of the Internal Revenue Service.

Assistant United States Attorney Ronald R. Brunson is prosecuting the case.

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