Two former Oregon bank executives were sentenced to prison Wednesday for conspiracy to commit bank fraud and falsifying bank entries, reports, and transactions, the result of a joint investigation by the federal bank deposit insurance agency and federal law enforcement.
In a release, the Department of Justice (via the U.S. Attorney’s Office for the District of Oregon) said Dan Heine and Diana Yates – both former executives at the Bank of Oswego in Lake Oswego, Oregon – were sentenced In Portland to 24 and 18 months in prison, respectively. The two had been convicted by a jury in November of last year of one count each of conspiracy to commit bank fraud and 12 counts each of falsifying bank entries, reports, and transactions. The Federal Deposit Insurance Corp. (FDIC) Office of Inspector General and the FBI investigated the case.
The DOJ said Heine, a co-founder of the bank, was president, chief executive officer (CEO) and member of the board of directors from September 2004 through September 2014. Yates was executive vice president, chief financial officer (CFO), and secretary of the board of directors from 2004 through March 2012.
According to the DOJ, Heine and Yates during the conspiracy concealed the true financial condition of the bank to regulators and the board of directors by falsely reporting that the bank had title to a property in a straw buyer transaction, falsely reporting that delinquent loans were paid, and falsely reporting the sale of bank owned property.
A forfeiture and restitution hearing has been scheduled for Aug. 7, DOJ said.