Former Williamson Mayor Pleads Guilty

  Former Williamson Mayor Darrin McCormick has pleaded guilty to lying to federal authorities.

The U.S. attorney’s office says McCormick entered his plea Thursday in federal court in Charleston. He faces up to five years in prison and a $250,000 fine at his Aug. 28 sentencing.

McCormick was charged in April with lying to the FBI and the IRS about suspicious banking activity by Aracoma Contracting, LLC. McCormick formerly managed the Bank of Mingo’s Williamson branch.

Aracoma pleaded guilty last November to conspiracy to structure currency transactions. Prosecutors say the company structured cash withdrawals to avoid federal reporting requirements.

Prosecutors say Aracoma used the cash to meet payroll, avoid paying employment taxes and bribe a former workers’ compensation auditor.

Aracoma was ordered to pay more than $4 million in restitution.

Williamson Mayor Resigns, Charged with Making False Statements

The soon-to-be former Mayor of Williamson is charged with making false statements to the Federal Bureau of Investigations and the Internal Revenue Service just hours after resigning from his post.

Williamson Mayor Darrin McCormick submitted his resignation letter Monday, but didn’t give a reason for the departure. That information was made public Tuesday and was followed by an information from US Prosecuting Attorney Booth Goodwin.

In the information, Goodwin charges McCormick willfully and knowingly made false statements to the FBI and IRS during an investigation at the Bank of Mingo’s Williamson branch, of which McCormick is the manager.

The investigation into the bank began in October 2013 and alleged the bank and a ban official conspired with Aracoma Contracting in a multi-million dollar worker’s compensation scheme.

The State Journal reports neither the bank nor any of its employees were charged at the time, but FBI Special Agent James Lafferty said in a sworn statement there was probable cause to believe McCormick aided Aracoma.

McCormick’s resignation is effective April 30. City Council appointed Municipal Judge Stephen Johnston Knopp to replace McCormick.

 

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