Ex-bank exec Alley to take over Indiana revenue office

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A former bank president will take the helm of Indiana's embattled revenue department.

State budget director Adam Horst says former Fifth Third Bank president Mike Alley will take over as the state's revenue commissioner. He'll replace John Eckart, who resigned last week.

Alley will take over a department hit by revelations that millions of dollars haven't been properly routed.

The state announced last week that nearly $206 million in local option income tax money owed to counties wasn't distributed. Horst has blamed the problem on a programming error.

The state also found in December that $320 million in corporate taxes that were collected over four years hadn't been transferred to the general fund.

Members of the State Budget Committee were discussing the glitches during a meeting Friday in Madison.

Alley was most recently chairman of Patriot Investments LLC, which does early-stage investments.

Prior to that, he was CEO at Evansville-based Integra Bank Corp., which was shut down by banking regulators last July. He had been hired in 2008 to try to save the debt-ridden bank but couldn't raise enough capital to pay off the bank's massive loan losses.

Alley spent 13 years leading Cincinnati-based Fifth Third Bancorp’s central Indiana operations before leaving in 2002 to focus on private investments.

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