TAMPA - Ex-Coast Bank executive Philip Coon will serve 18 months in a federal penitentiary in upstate New York, a federal judge decided today.
Coon, formerly the executive vice president of Coast Bank, had pleaded guilty more than three years ago to fraud charges in a scheme that involved skimming $1.5 million off of home construction loans taken out by almost 500 borrowers throughout the country.
Coon, who will turn 58 Thursday, will likely report for his prison sentence within the next month. His sentencing was held in federal court in Tampa this afternoon.
Coon faced a maximum sentence of five years and a $250,000 fine for conspiring with mortgage banker John Miller to add a 1 percent fee to borrowers’ loans, and for pocketing the money.
Coon and Miller confessed in 2008 to adding the fee on to Coast Bank loans that borrowers took out on empty lots that were supposed to be developed into homes by the now-defunct Construction Compliance Inc., a homebuilder out of St. Petersburg.
Coast Bank, which nearly failed in 2007, was bought by First Bank so the restitution Coon has paid has gone to the federal government. Borrowers tried for the last three years to receive a portion of that restitution, claiming that Coon’s additional point added to their loan costs. But the court ruled that no restitution should be paid.