AG Wants Failed Bank President Extradited From NZ
Palau’s Attorney General Jeff Beattie has filed three counts of cheating against the president of the collapsed Pacific Savings Bank, Tim Taunton. The charges stem from an alleged $4 million-plus in personal loans from PSB to Taunton and companies to which he was affiliated. The AG has asked the court to issue an arrest warrant to enable extradition proceedings to bring Taunton back from New Zealand where it’s believed he is now living.
The supporting affidavit of probable cause executed by Deputy Attorney General Lori Ann Zucco, states that Taunton had not put any money back into the bank since 1999. When Taunton opened the bank in 1992, he also opened a resort—the Caroline Resort— that was allegedly funded using bank deposits. Zucco states that the Financial Institutions Commission made attempts to get the bank president to make payments on his loans without success. The affidavit states that due to these and other large "non-performing loans". the FIC had to place the bank under receivership in late 2006.
Pacific Savings Bank had more than 6,000 depositors, mostly low income wage earners and foreign workers. The bank's failure was the largest in Palau's banking history and the effects of its closure are still being felt today. The investigation into the bank's failure and possible illegal activities continues by the Attorney General.
