In the following press release Donald W. Washington, United States Attorney for the Western District of Louisiana announced the unsealing of a federal indictment and the arrest of William Everett Nichols (below), age 56, of Alexandria, Louisiana, on federal charges involving bank fraud. On July 23, 2009, a two-count indictment was returned by the Western District of Louisiana Federal Grand Jury charging Nichols with one count of conspiracy to commit bank fraud and one count of bank fraud.
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Additional Materials

• Press Release
• Indictment

Photo from TheTownTalk.com
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The indictment alleges that Nichols, who is the President and sole shareholder of First Fidelity Mortgage, Inc., [Editor note. dba Southern Funding - pictured] knowingly and willfully conspired to devise a scheme to defraud Sabine State Bank and obtain money which the defendant, Nichols, was not entitled. Nichols and others prepared fraudulent notes by forging signatures of borrowers and notaries public, and would then deliver them to Sabine State Bank as collateral in order to cause the bank to deposit money into an account of First Fidelity Mortgage, Inc. The First Fidelity Mortgage bank account was controlled by Wiliam Everett Nichols.

If convicted, the defendant faces a maximum penalty of thirty years in prison, a fine of $1,000,000, or both.

An indictment is merely an accusation and all defendants are presumed innocent unless and until proven guilty. Defendants are entitled to a presumption of innocence under the law, and the government has the burden of proving every element of the charge beyond a reasonable doubt.

The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Alexander Van Hook.

Update on Friday, November 6, 2009 at 11:10AM by The Editor - Ian Shuter - ACFE, DMS

The Town Talk reports that on Friday, November 6, 2009 Nichols enter a guilty plea to defrauding Sabine State Bank out of $2.9 million.

William E. “Bill” Nichols, 56, of Alexandria, originally faced two federal fraud charges. The two-count indictment alleges Nichols and others prepared fraudulent promissory notes by forging signatures of borrowers and notaries and delivered them to the bank, which then deposited funds into an account for First Fidelity Mortgage Inc. which operated as Southern Funding.

Update on Friday, February 5, 2010 at 2:10PM by The Editor - Ian Shuter - ACFE, DMS

William Everett Nichols, 56, of Alexandria, La., President and sole shareholder of First Fidelity Mortgage, Inc., was sentenced to six years in federal prison and ordered to pay $3,903,071.00 in restitution for bank fraud, Acting United States Attorney William J. Flanagan announced today. Today’s sentence was imposed by U.S. District Court Judge Donald E. Walter in Shreveport.

Press Release