BANKER GRACE GUILTY OF OBSTRUCTING FEDERAL CRIMINAL PROBE BY LEAKING FEDERAL GRAND JURY SUBPOENA

HUNTSVILLE, AL -Today in U.S. District Court a federal jury found Jasper banker PHILLIP GRACE, 43, guilty of committing the felony of disclosing a federal grand jury subpoena with the intent to obstruct justice. He was also found guilty of the misdemeanor of disclosing a federal grand jury subpoena. Testimony at trial revealed the federal subpoenas were related to the on-going public corruption investigation in the Alabama Post-Secondary College system. U.S. Attorney Alice H. Martin announced the guilty verdict late this afternoon following a two-day trial of GRACE before U.S. District Court Judge C. Lynwood Smith, Jr.

“This banker was caught on tape clearly tipping off a customer by leaking knowledge of a federal grand jury subpoena, that is obstruction of justice and will be prosecuted,” said U.S. Attorney Alice H. Martin. “Bank officials are aware of this law and today’s verdict serves to remind them how serious violation of it will be taken by my office.”

GRACE was charged in a three-count indictment in August of 2006 with obstructing a criminal investigation by divulging the existence and contents of federal grand jury bank subpoenas, in addition to making false statements to federal agents. GRACE was found not guilty of the making a false statement charge in this week’s trial.

GRACE currently remains on bond, and a sentencing hearing will be scheduled by the Court.

He faces a sentence of up to 5 years in prison, a $250,000 fine or both on the felony, and up to 1 year in prison and a fine on the misdemeanor conviction.

The investigation in to this matter was conducted by the North Alabama Public Corruption Task Force through investigations with the Alabama Attorney General’s Office, the Federal Bureau of Investigation and the Internal Revenue Service. The prosecution was conducted by Assistant United States Attorneys George Martin and Matt Hart along with Special Assistant United States Attorney John Gibbs.