MetroCorp Bancshares Inc. announced that Advantage Finance Corporation, the factoring subsidiary of MetroBank N.A., has reportedly been the victim of a fraudulent scheme by a long-time customer, which will require an unusual charge-off against MetroBank's loan loss reserve during the second quarter of 2000. MetroBank N.A. is a wholly owned subsidiary of MetroCorp Bancshares Inc. and provides loans to Advantage to finance its factoring business. Advantage had a long-standing factoring arrangement under which the customer who allegedly instigated the fraud sold accounts receivable to Advantage at a customary factor's discount from the face amount due on the accounts. The customer recently informed Advantage and the Federal Bureau of Investigation that it fraudulently documented and sold to Advantage fabricated or inflated accounts receivable. The accounts receivable were purportedly payable by a company with a long and consistent payment history with Advantage.