stickyimage

Fraud Friday — Two Years in Jail for Bank VP who Approved Loans with Faked Docs

August 11, 2017

By Bob Coleman
Editor, Fraud Friday

Fraud Friday — Two Years in Jail for Bank VP who Approved Loans with Faked Docs

“Joseph Tobin, a former vice president at PBI bank, was sentenced to prison for taking part in a bank fraud scheme while the bank was in TARP,” says Christy Goldsmith Romero, Special Inspector General for TARP. “The conspiracy led to the loss of $2.2 million for PBI bank. Taxpayers suffered a loss of $31.5 million on the TARP investment in this bank along with missed dividend payments totaling more than $6.5 million.”

Joseph Tobin, age 45, gets two years in federal prison.

According to their guilty pleas, PBI borrowers Daniel Sexton and Jonathan Williams owned and operated several mobile home businesses in Georgetown, Kentucky.

Shella Flynn worked at those businesses as an office manager.

Sexton, Williams, and Flynn conspired together to obtain bank loans using false corporate accounting records, false tax records, and false appraisals for assets such as a private plane. They also failed to disclose debts they owed to others in their loan applications.

Tobin knew that the loan applications were fraudulent but approved them anyway. Sexton and Williams also recruited other people to take out loans from PBI Bank then direct the money to them. Tobin approved these loans even though he knew that Sexton and Williams were the true borrowers. Tobin also set up a straw loan for another borrower.

Daniel Sexton is serving 109 months in jail, Jonathan Williams got 60 months, and Sheila Flynn 24 months.

In addition to their prison sentences, the four defendants must pay restitution to four victimized banks. Sexton and Williams were each ordered to pay over $2.6 million in restitution, Tobin is responsible for $185,001 and Flynn for over $1.4 million.

1 week ago by in . You can follow any responses to this entry through the | RSS feed. You can leave a response, or trackback from your own site.