CHARLESTON, W.Va. — U.S. Attorney Booth Goodwin said the federal investigation focused on the Bank of Mingo and the institution’s possible role in illegal activities involving Aracoma Contracting, an employee leasing firm, will continue.
“There was some obviously suspicious activity that was occurring there. It fueled this multi-million dollar scheme,” said Goodwin. “Of course, we’re going to be looking, and have been looking, at just what was occurring there at the Bank of Mingo.”
Goodwin was a guest on Wednesday’s MetroNews “Talkline,” a day after a federal information was filed against the manager of the Bank of Mingo’s Williamson branch.
Darrin McCormick, 50, is accused of lying to an FBI agent investigating a workers’ compensation scheme and suspicious banking activity tied to Aracoma Contracting.
Aracoma Contracting, the company itself, was sentenced in February to three years probation and ordered to pay more than $4 million in restitution for operating a structuring scheme.
Those with the company, with the help of an employee at Bank of Mingo’s branch in Williamson, would make multiple withdrawals of $10,000 or less in cash — below reporting requirements — to cover payroll costs while avoiding federal employment taxes.
That money was also used to bribe Arville Sargent, a field auditor with Brickstreet Insurance, to falsify employee records so the company would not have to pay full workers’ comp rates. Sargent has already been sentenced along with Aracoma Contracting’s principal players.
“This is a branch of our larger investigation into illegal dealings there in Mingo County,” said Goodwin. At this point, Goodwin said it was not clear if other Bank of Mingo officials were involved or if McCormick would be the lone bank employee charged.
“It is certainly possible,” he said. “What they’re doing is avoiding reporting requirements. A manager at a bank, it depends on the controls at the bank, has a great deal of latitude in the operation of the bank.”
McCormick resigned from his position as Williamson’s mayor on Monday before the federal information, indicating cooperation with investigators, was filed against him on Tuesday. His resignation will take effect on Apr. 30.