Former FI loan executive charged over $690k worth of false loan applications

Aiding and abetting false statements on applications for some $690,000 in loans were the charges levied March 4 against a former chief lending officer of a Berwick, Pa.-based financial institution, the federal bank deposit insurer’s inspector general announced.

The Federal Deposit Insurance Corp. (FDIC) Office of Inspector General (OIG) said Matthew W. Mensinger, 48, of Berwick was charged in a “criminal information” Friday by the U.S. State Attorney’s Office for the Middle District of Pennsylvania. It did not identify the institution where Mensinger worked.

It said that between about November 2011 and June 2020, Mensinger caused other individuals and entities to obtain approximately $690,000 in loans from the financial institution, “purportedly” for small business purposes. Instead, that money went to Mensinger, who reportedly promised that he would repay the loans.

The agency said that if convicted, Mensinger would face a maximum federal penalty of 30 years of imprisonment, a term of supervised release following imprisonment, and a fine.

Berwick Bank Officer Charged With False Loan Applications