March 11, 2016

By Bob Coleman
Editor, Fraud Friday

Fraud Friday — Community Bank CEO Sentenced to Two Years for Understating Loan Losses

Laurie Mayfield signed off of a Call Report that “hid” $830,000 in loan losses when her bank was sold to Texas-based Vantage Bank.

She received two years in prison, three years probation and ordered to repay $817,800 in restitution.

Reports Patrick Danner of the San Antonio Express-News.

“I’m just truly sorry,” a tearful Mayfield of Fredericksburg told [Judge] Rodriguez before he imposed the sentence. “I just thought I was doing the right thing … to protect everyone.”

Mayfield’s lawyer Kira Anne West argued the former banker shouldn’t be responsible for the full amount of restitution since she didn’t take all of the money. Mayfield admitted she also issued more than $68,000 in cashier’s checks to herself and used the money to pay for various living costs, including her daughter’s college sorority fees.