Former Hume bank president sentenced to 6 years

Former president of the Hume Bank, Jeffrey W. Thompson, had his day in court and is now headed to federal prison for six years without parole. Thompson, 39, was charged with one count of bank fraud, three counts of misapplication of bank funds, six counts of false bank entries, reports and transactions, and three counts of making false statements to the FDIC.

According to court documents, Thompson presented false statements and reports to the bank's board of directors and the FDIC. The false reports concealed problem loans from state and federal bank examiners and from the bank's board.

As a result of Thompson's alleged misconduct the bank incurred large loan losses including $234,000 on a loan to his wife's uncle as well as loans to other relatives. On March 7, 2008, the FDIC closed the bank and the FDIC insurance fund sustained a loss of $4,324,463 in order to meet obligations to depositors. The bank was taken over by the Security Bank of Rich Hill, March 10, 2008.

Thompson was the president of Hume Bank from 2001 until 2007.