10-16-13 Bank draws attention in workers’ comp probeLatest Headlines Wednesday, October 16th, 2013 Would you like to receive e-mail alerts when we have breaking news? Click here!
CHARLESTON, W.Va. (AP) — A federal investigation into a workers’ compensation scheme has spread to the Bank of Mingo in southern West Virginia.
FBI Special Agent James Lafferty says in a sworn statement he has probable cause to believe the bank and a bank official conspired with or aided and abetted Aracoma Contracting in structuring cash withdrawals to cover up the scheme.
Mentioned in the affidavit is Darrin McCormick, a bank branch manager who is also mayor of Williamson.
Neither the bank nor any of its employees has been charged.
McCormick did not immediately return calls seeking comment Tuesday.
The bank’s board chairman, Harry Keith White, says the bank is cooperating with authorities and is reviewing procedures in light of the allegations. He says McCormick is on a paid leave of absence.