Dothan banker pleads guilty to embezzlement

MONTGOMERY, Ala. (AP) - Federal authorities say a 70-year-old Dothan bank executive has pleaded guilty to embezzling funds from his employer in a loan approval scheme dating back to 1992.

James Goldsborough, who was a loan officer at PeoplsSouth Bank, entered the plea Monday to one felony count and will be sentenced this fall by U.S. District Judge Keith Watkins of Montgomery.

U.S. Attorney Leura Canary said Goldsborough would approve loans to fictitious borrowers in amounts of $25,000 or less, then use the money either for personal expenses or to repay other fictitious loans that were coming due.

She said that when the scheme was detected in August of 2009, records show he had about 92 fictitious loans outstanding with a total principal of about $1.8 million.

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