Jack Witherspoon Hines of Brewton pleaded guilty on April 11, 2012, to one count of making a false statement pertaining to a bank loan, in violation of Title 18, United States Code, Section 1001. Kenyen Brown, U.S Attorney for the Southern District of Alabama, made the announcement yesterday.
As part of his plea, Hines admitted that he pledged shares of stock as collateral for a loan from the Bank of Brewton when he had already pledged the same stock for a loan from another bank, which maintained the original stock certificate. In so doing, Hines falsely represented that the stock had been pledged as collateral only for the Bank of Brewton loan.
Hines faces a statutory maximum penalty of five years imprisonment, plus a fine of $250,000. His sentencing is set for July 19, 2012, at 9 a.m., in front of U.S. District Court Judge Kristi Dubose.
The Federal Deposit Insurance Corporation investigated this case, which was prosecuted by Assistant U.S. Attorney Gregory Bordenkircher.