WILLIAMSON, W.Va. — U.S. Attorney Carol Casto announced Wednesday the First National Bank of Williamson has failed to report suspicious activity.

The bank forfeited $1.36 million Tuesday after Casto said they violated the Bank Secrecy Act.

According to a news release, there were $1.36 million in withdrawals of exactly $10,000 dollars in cash from the bank between April 2006 and November 2008. Arthur White, Jr., and others structured that money in order to avoid mandatory reports.

Under the law, banks must report all cash transactions of over $10,000. Whenever structuring is detected, banks are required to file Suspicious Activity Reports.

White previously pleaded guilty in federal court to tax evasion and structuring. He admitted that he cashed checks made payable to his companies that held accounts at First National Bank of Williamson. The bank permitted White to pay cash for cashier’s checks made payable to himself, without first depositing the money into any account, according to the complaint. The cash obtained was then used to pay wages for some of White’s employees.

West Virginia State Police and the FBI assisted in the investigation.

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