Oklahoma Bank CEO Pleads Guilty to Fraud Resulting in Bank Closure

May 15, 2026

Bob Coleman
Founder & Publisher

Oklahoma Bank CEO Pleads Guilty to Fraud Resulting in Bank Closure

Danny Seibel, the former CEO of First National Bank of Lindsay, Oklahoma, pleaded guilty to one count of bank fraud last week. 

The 55-year-old Seibel cooked the books with hundreds of accounting entries by modifying loan maturity dates and making overdrafts disappear. 

He gave the OCC a doctored general ledger for June 27, 2024. But the OCC hires some very smart people, and they found the real records.

Danny learned the OCC had obtained the real copy of the “Daily Maintenance Report for June 27, 2024.” He texted another bank employee, ‘I think I’m nailed to the wall now I gave them a report that is not the same as what they got now and they have both. 

Nobody’s fault but my own. Also, delete these texts,’” the indictment stated.

The 100-year-old $108 million asset bank was closed by the OCC in October 2024, with an estimated $43 million in bad loans to be written off to the FDIC fund. 

The Feds say he chose to enrich himself and a few friends, straying from his fiduciary duties.

Check out the interaction Danny and three borrowers from the indictment.

Borrower 1 is described as the owner of a trucking company who maintained a business checking account at the bank. Borrower 2 owned several automotive businesses and was a “frequent gambler” and a “friend” of Seibel’s.

“On several occasions, Borrowers 1 and 2 texted Seibel asking him to ‘fix’ or add funds to their overdrawn accounts by manually adding FNBL funds to their accounts when they needed money.”

The indictment notes that, on March 29, 2023, Borrower 2’s account was overdrawn by more than $372,000.

“The following day, Seibel created a new loan for $400,000 — loan number 31137 — to cover the overdraft. 

Approximately three months later, on July 5, 2023, Seibel reassigned loan 31137 to a business associated with Borrower 3, without notifying Borrower 3 or others associated with that business,” the indictment said. “Seibel then made multiple changes to the loan’s maturity date, pay date, and other information throughout 2023 and 2024. These changes made loan 31137 appear healthy, despite only one payment of approximately $6,400 ever being recorded for this putative $400,000 loan.”

In the indictment, Borrower 3 was identified as the owner of an HVAC company “that often served marijuana grow houses,” and he was also described as a friend of Seibel’s. The indictment does not allege Borrower 3 was aware of Seibel’s scheme.

However, the indictment references Borrower 2 making withdrawals at Riverwind Casino, and it includes multiple references to Seibel allegedly asking Borrower 2 to arrange hotel rooms for him at casinos.

“On or about July 5, 2023, Seibel texted Borrower 2 and asked Borrower 2: ‘Any pull to get us a nice room at Riverwind [Casino] Saturday night? Or somewhere else close by? Tried Artesian [Casino] but booked up.]’ Borrower 2 responded the following day: ‘You’re completely set up for Saturday night under your name,’” the indictment said. “On or about Aug. 31, 2023, Seibel again texted Borrower 2 and asked Borrower 2 whether he could book him a room at the Riverwind Casino. Borrower 2 replied that he had reserved Seibel a ‘[j]unior suite.’ Seibel responded: ‘No shit?! Awesome. Thanks, man.”

The indictment also details Seibel’s messages with Borrower 1, for whom he also backfilled an account with overdrafts exceeding $530,000.

“On or about March 7, 2024, Borrower 1 texted Seibel and again asked him to ‘fix’ his account. Seibel responded, ‘You bring me deposits tomorrow. I am finally totally tapped. Way too far OD. You need to go factor and cover this overdraft… Hey, I’m over $500k. I’m tired of taking care of your business and getting no damn deposits. I have legal lending limits, and overdrafts are part of it. I’m sorry my job ain’t worth it,’” the indictment said. “On March 28, 2024, the Borrower 1 xx2071 Account had a negative balance of $533,598.54. The following day, Seibel manually added $536,850.00 to the account, clearing the overdraft, when no such deposit had actually been made.”

Seibel is also accused of improperly issuing loans by “falsely stating” their purpose. “On several occasions, Seibel disbursed loans to Borrowers 1 and 2 purportedly to purchase or improve real estate, vehicles or equipment. The proceeds were instead used to repay portions of other loans, gamble or pay day-to-day expenses,” the indictment said.

Seibel was placed on leave Sept. 12, 2024, and was terminated eight days later, about one month before the bank’s failure. 

White collar crime is not a victimless crime.

Sadly, a vice president of the bank died by suicide two weeks after the bank failure. A husband and father, his obituary said, “He loved this country and all the freedoms it represents, especially the right to bear arms, and he did just that, everywhere he went. He probably broke a few laws but he was always ready to defend the people he loved. That’s just who he was. He was not without faults, but was so quick to apologize, and to forgive. He was loyal and faithful always. He was caring and loving and kind.“