CHARLESTON, W.Va. -- A federal investigation into a multi-million-dollar workers' compensation scheme extended to the Bank of Mingo in southern West Virginia, where authorities seized computer hard drives and documents.
FBI Special Agent James Lafferty said in a sworn statement he had "probable cause" to believe the bank and a bank official "conspired with or otherwise aided and abetted" Aracoma Contracting in structuring cash withdrawals to cover up the scheme.
Federal and state authorities have been investigating a scheme to lower workers' compensation insurance premiums. The probe has focused on a group of coal-mining contract firms operating around Mingo County, including Aracoma Contracting.
Neither the bank nor any of its employees has been charged.
Lafferty's sworn statement specifically mentioned Darrin McCormick, manager of the Bank of Mingo's Williamson branch. McCormick also is mayor of Williamson.
The FBI agent said he had probable cause to believe McCormick had aided Aracoma Contracting in the scheme.
McCormick did not immediately return calls seeking comment Tuesday.
The bank's board chairman, Harry Keith White, said McCormick had been placed on paid leave of absence.
"We're fully cooperating with the investigation, and anything of any substantive matters we really can't comment on since it's an ongoing investigation," said White, who is also majority leader of the West Virginia House of Delegates.
White said the bank is reviewing its procedures in light of the allegations.