Friday, June 10, 2016
Big CEO Banker goes to Jail
March 23, 2016 TierOne Bank’s former chief executive, Gilbert Lundstrom a $3 billion publicly-traded commercial bank formerly headquartered in Lincoln, Nebraska, was sentenced to 132 months (11 years) in prison today for orchestrating a scheme to defraud TierOne’s shareholders and to mislead regulators by concealing more than $100 million in losses on loans and declining real estate. Lundstrom, 74, also was ordered to pay a $1.2 million fine, “My career and reputation built over 50 years is destroyed.” Lundstrom was sentenced in the same courtroom where he once practiced law.
465 U.S. banks failed from 2008 to 2012 the worst period for such insolvencies since the Great Depression. Lundstrom, the first U.S. bank leader tied to the financial crisis, will there be more? or is Gilbert a fall guy?
“The entire financial system is dependent upon full and truthful disclosure by the executives of financial institutions and the sentence imposed today sends a message to high-level executives who abuse their position of trust,” said Special Agent in Charge Thysse. “The FBI will continue to investigate and bring to justice those who exploit their influence or position for personal gain at the expense of the investing public.”
This comment by Special Agent Thysse reminds me of a Ship my grandfather and father once sailed.
Department of Justice
Omaha's News Leader
The public understands the corruption at large, unlike the exit doors in a crowded hallway during a market crash, Hell's hallway is as free flowing as a Hersey Highway, right Kenny?