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Justice News

Department of Justice
U.S. Attorney’s Office
Southern District of Mississippi

FOR IMMEDIATE RELEASE
Monday, April 15, 2013

Former Bank Ceo Pleads Guilty To Bank Fraud And Money Laundering

Jackson, Miss. -- Larry Barnette Hill, 58, of Meadville, Mississippi, pled guilty today in U.S. District Court to bank fraud and money laundering, U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen announced.


Larry Barnette Hill served as CEO of People’s Bank of the South in Bude, Mississippi. From 2004 through 2012, he fraudulently withdrew money from the bank’s Payroll Clearing Account and deposited those funds into the bank accounts of his family members and into a “shell” bank account he created for his personal benefit and the benefit of others. Hill also used the bank’s credit card for personal expenses without the bank’s authorization, and took third-party checks issued in the name of People’s Bank to make payments on a personal loan that he held at another bank and to embezzle funds into other accounts he owned and controlled for his own benefit or the benefit of others.


Hill concealed his fraudulent activities by creating false general ledger tickets which appeared to be for bank expenses in order to disguise his fraudulent activities within the budget of the bank. He also falsely inflated the bank’s budget each month in order to disguise additional money he was embezzling.
The total amount of loss in this case is still being calculated, but is estimated to be from $600,000 to over $1 million.


Hill will be sentenced by U.S. District Judge Tom Lee on July 11, 2013, at 9:30 a.m.
The maximum penalty for bank fraud is 30 years in prison and a $1,000,000 fine, and the maximum penalty for money laundering is 20 years in prison and a $500,000 fine.


This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Mike Hurst.

If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:

(866) 720-5721

You can also fax information to:

(225) 334-4707

or e-mail it to:

disaster@leo.gov


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Updated January 7, 2015