SunFirst Bank, whose former vice chairman John Campos was indicted on Black Friday, has been shut down by Utah regulators almost seven months after the April 15 indictments.
While initially reluctant to process payments for online poker sites, Campos agreed after taking a deal that gave him a $10 million investment in SunFirst.
Chad Elie, charged on all nine counts of the original indictment including money laundering, bank fraud and violating the UIGEA, received a 30% stake in the bank along with an associate.
As of the end of September, SunFirst listed approximately $198.1 million in assets and $169.1 million in deposits.
The bank has reopened as Cache Valley Bank and will continue to be insured by the Federal Deposit Insurance Corp, which has been appointed by the Department of Financial Institutions as receiver.
As part of the assumption agreement, Cache Valley Bank agreed to buy approximately $177.3 million of SunFirst’s assets. The FDIC will retain the remaining balance of the assets to be disposed of at a later date.
Both Campos and Elie filed pre-trial motions to dismiss earlier this autumn, while the US Department of Justice recently filed its response to those motions.