Former Bank of Irvine vice president Nelson Hallidy was indicted Thursday by a Los Angeles federal grand jury on charges that he helped Orange County businessman W. Patrick Moriarty launder $196,600 in bank transactions to avoid Internal Revenue Service reporting requirements.
The 61-year-old Hallidy could be imprisoned for 42 years and fined more than $3.5 million for the alleged scheme. He is scheduled to be arraigned May 20 on the 10-count indictment.
Moriarty was a co-founder of the bank and served on its board of directors until June, 1983. Its doors were closed by state banking authorities a year ago when its solvency was threatened by bad loans. It was immediately reopened by Security Pacific State Bank.
The indictment charges that Hallidy engaged in a conspiracy with Moriarty to keep transactions of $10,000 or more from being reported to the IRS as required under the federal law governing currency transactions.