Ex-bank president in Texas gets 8 years for fake loans, arson to try to cover up fraud

A former Texas financial institution president who issued hundreds of thousands in fake loans over nearly a decade and set a fireplace to try and cover the fraud was sentenced to eight years in jail Tuesday, prosecutors mentioned.

Anita Gail Moody, 57, pleaded responsible in June to conspiracy to commit financial institution fraud and arson.

She was ordered to pay greater than $11 million in restitution, which is what the now-closed Enloe State Bank that she ran misplaced, the U.S. Attorney’s Office for the Eastern District of Texas mentioned.

Moody was president of the financial institution in Cooper, round 80 miles northeast of Dallas, and the fraud she pleaded responsible to started in 2012.

In May 2019 — in the future earlier than the Texas Department of Banking was scheduled to conduct a evaluate — Moody set a fireplace in the financial institution boardroom with information left on a desk, all of which had been burned, in accordance to prosecutors.

She had created greater than 100 fraudulent loans over the years, prosecutors mentioned in courtroom paperwork.

She used among the cash on her boyfriend’s and mates’ companies, for household and for her personal life-style, together with a Jeep. Other federal investigators mentioned among the loans had been taken out to pay the curiosity and principal on the others, in order that nothing would appear amiss.

Moody “has skilled nice regret over these occasions and takes full accountability for her actions,” Moody’s lawyer, John C. Ginn, mentioned in an e mail Tuesday evening.

“She is prepared to serve her sentence and can make amends as circumstances permit in the longer term,” he mentioned.

Ginn argued in courtroom paperwork that Moody labored for the financial institution her complete grownup life and described a life spiraling uncontrolled, including that she first lent the cash out of sympathy, however in 2012 began started utilizing the loans for herself.

“Criminal conduct that impacts the monetary well being of a small, native lender can ship a detrimental ripple impact all through all the group,” performing U.S. Attorney Nicholas J. Ganjei said in a statement.

The financial institution was closed by the Texas Department of Banking in 2019. It had been chartered in 1928. At the time, the division said it was pressured to achieve this “due to insider abuse and fraud by former officers.”

A former financial institution vice president, Jeannie Swaim, final 12 months pleaded responsible to a single depend and was sentenced to two years in jail and ordered to pay greater than $410,000 in restitution, in accordance to the U.S. lawyer’s workplace and courtroom data.

The Federal Deposit Insurance Corporation, which insures deposits, was appointed as receiver after the financial institution failed. The loss to the company’s deposit insurance coverage fund was round $21 million, an inspector basic’s report said.

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