TEXAS BUSINESSWOMAN, MARYLAND BUSINESSMAN CHARGED WITH CONSPIRING TO DEFRAUD THE FDIC
FOR IMMEDIATE RELEASE PR-16-98 (3-16-98)
Media Contact: Patrick I. Noble (202)416-2912
Federal Deposit Insurance Corporation (FDIC) Inspector General Gaston
L. Gianni, Jr., announced today that Texas businesswoman Nolanda Sue
Hill and Maryland businessman Kenneth Charles White were indicted
March 13 by a federal grand jury in Washington, D.C., on charges of
conspiring to defraud the FDIC from 1989 to 1993 while serving as
officers of Corridor Broadcasting Corporation. Corridor owned and
operated television broadcast stations in the District of Columbia
(Channel 50) and the Boston/Worcester, Massachusetts, area (Channel
27) from the mid-1980s to 1993. Hill held a financial interest in and
was chief executive officer of Corridor, while White was Corridor's
chief financial officer.
White alone was also charged with making a false statement to the
FDIC in 1992.
Other charges against White and Hill include conspiring to defraud the
Internal Revenue Service (IRS), and helping to prepare false federal
income tax returns for Hill and Corridor.
According to the indictment, in the mid-1980s Corridor borrowed $21
million from a Texas savings and loan association, and failed to repay
the loan. The S&L later failed and the loan was assumed by the FDIC.
Hill and White allegedly lied to FDIC officials about Corridor's
financial condition and provided fraudulent records that hid the
diversion of funds from Corridor. The indictment charges that Hill
and White caused Corridor and its successor to pay for some of Hill's
personal living expenses and the expenses of a company owned by Hill
and another person, and to give funds to this business associate. The
FDIC sold the note, which was collateralized by the assets of Corridor
and the two television stations, at an auction in early 1993.
The case was investigated by the FDIC's Office of Inspector General,
the IRS, the Federal Bureau of Investigation and the U.S. Department
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Congress created the Federal Deposit Insurance Corporation in 1933 to
restore public confidence in the nation's banking system. The FDIC
insures deposits at the nation's 10,922 banks and savings associations
and it promotes the safety and soundness of these institutions by
identifying, monitoring and addressing risks to which they are
FDIC press releases and other information are available on the Internet via the Word Wide Web at www.fdic.gov and may also be obtained through the FDICís Public Information Center (800-276-6003 or (703) 562-2200).