IA banker admits backdating loan to obstruct examination

An Iowa banker pleaded guilty last month to obstructing the examination of his bank by backdating a refinancing loan to block an investigation by the Federal Deposit Insurance Corp. (FDIC), according to the U.S. Department of Justice (DOJ).

The banker faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment, according to DOJ.

In a release, the DOJ said Martin Smith, 38, from Center Point, Iowa – and a former vice president at Center Point Bank & Trust – admitted in U.S. district court Aug. 27 to backdating the loan. He was convicted of aiding and abetting the obstruction of the examination of a financial institution. He remains free on bond pending sentencing.

The case was investigated by the FDIC Office of Inspector General and the United States Secret Service.

Former Center Point Bank Vice President Pleads Guilty to Aiding and Abetting the Obstruction of an FDIC Examination