Community First Bank, former VP named in lawsuit

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Former Community First Bank (CFB) Vice President Benjamin Hiott has been named in a lawsuit alleging the former banker is involved in $1.7 million missing from a trust fund.

The lawsuit, filed in Oconee County by Debi Baker Brookshire of Hilton Head on Sept. 8, 2014, claims that Benjamin Lee Hiott used his position at CFB and power of attorney she entrusted to him, to transfer large and small sums of money to personal and business accounts between July 12, 2007 and June 15, 2010. Brookshire’s lawsuit names both Hiott and Community First Bank.

According to the lawsuit, Brookshire claims she did not receive statements during the time of the alleged transactions which eventually led to her funds being depleted.

Hiott’s attorney has asked for the lawsuit to be dismissed because the statute of limitations of three years, has run out.

The lawsuit claims breach of trust, conversion and negligent supervision among other causes of action.

According to court filings, the trust fund was established with CFB in May of 2007 with a deposit of $1,172,000. Monthly deposits of at least $5000 were expected to go into the account.

Hiott was assigned power of attorney to facilitate investments from the trust account.

The lawsuit alleges that Hiott began making withdrawals from the account almost immediately.

The lawsuit alleges Hiott told Brookshire and a representative that $500,000 had been used to purchase an annuity for children related to Brookshire, a claim which turned out not to be true.

According to the lawsuit, $1,244,378 went to Joe Crosby and Coach’s Low Country Brands; $539,956 went to undocumented and unknown destination; $60,500 went to Terry Russell; $50,000 went to Upstate Real Estate; $37,325 went to Ben Hiott and his wife; $57,703 went to shares sold by Community First Bank and $16,000 went to William Steele, a Community First Bank Vice President.

Hiott’s attorney, Daryl Hawkins, filed a motion to dismiss his client from the lawsuit, which went before Judge Lawton McIntosh last week. According to reports, McIntosh told Hawkins, “My gut reaction is I’ll be hard pressed to grant your motion, considering the behavior your client is alleged to have engaged in.”

McIntosh is expected to make a ruling on the motion to dismiss next week.

Hawkins and Brookshire’s attorney David Scott disagreed on the date of when the statute of limitations should begin.

Hawkins argued the statute of limitation should begin February 2011 when the trust fund account was closed without any accounting. Scott argued the statute of limitation should begin when his client had knowledge of causes of action, not just suspicions.

According to documents, the biggest beneficiary of the trust funds was Joseph Crosby Jr., who headed Coach’s Low Country Brands, LLC, which was headquartered in Seneca.

Crosby, a former head football coach at several small colleges in Georgia, marketed Coach’s Low Country Boil Seasoning, which he developed when he owned and operated T-60 Bar and Grill near Fair Play.

According to Brookshire’s lawsuit, on July 12, 2007, Hiott withdrew $500,000 from her trust at CFB which went to Joe Crosby. Other large amounts followed. Legal counsel for CFB indicated that Brookshire had knowledge and consented to the $500,000 disbursement. Brookshire’s lawsuit denies she ever heard of Crosby and was unaware of the transaction.

Community First Bank filed a response to the complaint in court rebuting the lawsuit as well as a counterclaim which seeks to have Brookshire return $788,850 to the bank that was transferred into her account by Hiott.

A statement sent to The Journal from Community First Bank representative Richard D. Burlson states that CFB has reported the allegation of Brookshire’s complaint to its insurers and regulators.

“The bank does not believe the Complaint accurately describes the facts in many respects, but even certain facts alleged in the complaint demonstrate that the claim lacks merit.”

“The Complaint acknowledges that before this customer had an account with the Bank, she executed a power of attorney granting Mr. Benjamin Hiott (who has not been employed with the Bank for approximately a year) broad authority in his individual capacity) (as opposed to his capacity as a Bank employee) to handle her financial affairs. He exercised that authority for several years without objection by Mrs. Brookshire. Banks and other business have a right to transact business with people acting under a power of attorney, and customers have a duty to raise objections regarding allegedly unauthorized transactions in their acounts. The Bank intends to virorously defend itself against this claim.”

The main office for Community First Bank is in Seneca with branch locations in Anderson, Westminster and Williamston.