Monday, September 22, 2014

Bank Executive Pleads Guilty to Fraud Charges; Are FNB Exec's in the FDIC's cross hairs?

FDIC NOT LETTING DOWN ON 
EXECUTIVES OF FAILED BANKS

Criminal Charges more common


A former TierOne Bank executive has pleaded guilty to defrauding the failed bank's shareholders and federal banking regulators.  It is the first criminal charge filed in connection with the bank's financial collapse.  

Don Langford, who was a senior vice president and chief credit officer at the Lincoln bank, pleaded guilty in U.S. District Court to conspiring to commit securities fraud, wire fraud and making false entries in a bank’s books and records, as well as one count of making false statements.

He faces as many as five years

 in prison on each count 

when he is sentenced Dec. 5. The criminal charge and pleading were filed in U.S. District Court of Nebraska on Tuesday. Langford also faced federal civil litigation in the case. 

“When the real estate market crashed, Don Langford, the chief credit officer and a senior vice president of TierOne Bank, worked with others to cook the bank’s books and cover up mounting losses,” Assistant U.S. Attorney General Leslie R. Caldwell said in a news release. 

“This conviction is another example of 

the Criminal Division’s pursuit of 

corporate executives who commit 

fraud, no matter what their title or 

stature.”

According to the criminal information filed with his plea agreement,  Langford, 63, of Gibsonia, Pennsylvania, and others who were not named falsely inflated the value of TierOne’s loan and real estate portfolio in its required reports to the U.S. Securities and Exchange Commission and the Office of Thrift Supervision in 2009 and 2010.

In January 2009, TierOne had executed a supervisory agreement with the Office of Thrift Supervision that required TierOne to report information about its performance and financial condition and to maintain a minimum capital position in relation to its loan portfolio and other assets. Langford and others intentionally used outdated appraisals on properties, and rejected new appraisals that would have adversely affected TierOne’s reportable assets, revenue and earnings, the Justice Department said.

In addition, they delayed seeking new appraisals to conceal the current value of collateral and restructured loan terms to disguise the borrower’s inability to make timely interest and principal payments, according to the filing. As a result, Langford and others were able to hide millions of dollars in losses from regulators and investors.

NOW CALL ME CRAZY BUT DOESN'T THIS SOUND LIKE THE GANG FROM EDINBURG???

LET'S PUT THEM ON THE STAND!!

1 comment: