A plea of guilty to charges of conspiring to make false statements to a bank’s board were made by a former Illinois bank executive last week in the wake of the failure of the institution that employed him.
In a release, the office of the U.S. Attorney for the Central District of Illinois, with the Federal Deposit Insurance Corp.’s (FDIC) Office of General Counsel, stated that Dana Frye of Bettendorf, Iowa – formerly the executive vice president and chief loan officer for the failed Country Bank of Aledo, Ill. – pleaded guilty to conspiring with others to make materially false statements to Country Bank’s board of directors to influence the bank to make loans to entities in which he held a personal financial interest.
He faces a potential sentence of imprisonment of five years along with payment of restitution.
According to the U.S. Attorney, Frye admitted before a U.S. District Court judge that he conspired with others to influence Country Bank to make loans to projects in which he held a personal financial interest, but failed to disclose his financial interest. Frye also admitted, the U.S. Attorney said, that he used his position to assist others to secure loans for his personal projects.
The U.S. Attorney also pointed out that, in May 2009, Country Bank received $4.1 million in aid through the Department of Treasury’s Troubled Asset Relief Program (TARP), and that in October 2011, Country Bank failed and the FDIC, as receiver, covered losses in excess of $70 million.