Lexington , Ky. —A former bank president in Eminence, Kentucky was sentenced Tuesday by District Court Judge Karen K. Caldwell to three years in prison and ordered to repay all of the $13,389,000 he stole from Farmers Deposit Bank.

William J. Covington, 57, of Shelbyville, Ky., pleaded guilty in October of 2007 and admitted that while he was President of Farmers Deposit Bank in Eminence he devised a scheme to defraud the bank and its holding company, Premier Financial, in May of 2002.

Specifically, Covington made loans in the names of fictitious or “nominee” borrowers while knowing that the proceeds of the loans were to be given to other entities. Covington knew the board of directors would not approve the loans if the true recipient of the funds were known.

Under federal law, Covington must serve 85 percent of his prison sentence, and, upon release, will be under the supervision of the United States Probation Office for five years.

James A. Zerhusen, Acting United States Attorney for the Eastern District of Kentucky, Special Agent in Charge Gary L. Sherrill, Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG), and Larry R. Willis, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), jointly made the announcement today after the sentencing.

The investigation was conducted by the FDIC-OIG and FBI. The United States was represented by Assistant United States Attorney Andrew L. Sparks.

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