FDIC OIG lists convictions, prosecutions, $15.7 million collected in semiannual report

Convictions reached on multiple counts of bank fraud, guilty pleas by bank executives for stealing from their institutions, and recoveries from individuals who stole from a fund meant to help businesses pay their workers during the coronavirus crisis are all among the highlights listed by the inspector general for the federal bank deposit insurance in his latest report to Congress.

In the report (dated Oct. 30, but released publicly Wednesday), Federal Deposit Insurance Corp. (FDIC) Inspector General Jay M. Lemer reported that between April 1 and Sept. 30, his office opened 94 investigations (and closed 26); brought court actions that resulted in 77 indictments/informations, 35 convictions and 42 arrests; and collected through fines, asset forfeitures and restitution totaling $15.7 million.

In addition, the OIG leader said, his office made 209 referrals to the Department of Justice.

Among the highlights listed:

  • A former banker and mortgage broker were convicted on multiple counts, including conspiracy, bank fraud, false statements on credit applications, wire fraud, and mail fraud, resulting in 84 months and 132 months in prison, respectively, and ordered to pay restitution of $6.8 million, joint and several.
  • Three separate defendants pleaded guilty to working with bank executives to defraud First NBC Bank of New Orleans of more than $123 million. The bank failed in April, 2017.
  • Participated in the investigation and prosecution of more than 50 individuals who allegedly committed fraud to obtain money from the Paycheck Protection Program (PPP). “These cases involved attempts to steal over $175 million from the PPP, and because of our investigative work with our partners, the Government has recovered or frozen more than $30 million and the work continues,” Lemer wrote.

FDIC OIG Semiannual Report to the Congress: April 1-Sept.30, 2020