A US financial institution govt is going through federal fraud expenses after allegedly steering his establishment right into a years-long scheme that enriched mates, neighbors, and favored debtors whereas concealing the reality from regulators and his personal board.
Prosecutors say Danny Seibel, 54, the previous president and CEO of the First Nationwide Financial institution of Lindsay, has been charged by a grand jury within the Western District of Oklahoma with conspiracy to commit financial institution fraud, financial institution fraud, making false entries within the books and data of a monetary establishment, obstructing a monetary examination and failing to implement required anti-money laundering safeguards.
In accordance with the Division of Justice indictment, Seibel triggered the financial institution to situation loans to sure clients, lots of whom had been private acquaintances.
The loans had been by no means repaid.
He then allegedly manipulated financial institution data to make these loans seem performing and wholesome to each the financial institution’s board of administrators and the Workplace of the Comptroller of the Foreign money (OCC), the federal regulator accountable for supervising nationwide banks.
Prosecutors say that Seibel repeatedly modified mortgage knowledge and falsified stories to cover mounting overdrafts and dangerous loans, together with offering false documentation throughout an OCC onsite inspection in the summertime of 2024.
He’s additionally accused of failing to file suspicious exercise stories on his personal conduct and advising clients to construction money deposits beneath reporting thresholds to evade anti-money-laundering necessities mandated beneath the Financial institution Secrecy Act.
First Nationwide Financial institution of Lindsay was closed by regulators in October 2024 after misleading and unsound practices depleted its capital, and a receiver was appointed.
If convicted on all counts, Seibel faces as much as 30 years in jail and fines of as much as $1 million, reflecting the federal authorities’s more and more aggressive pursuit of monetary crimes.
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