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Former bank executive sentenced to prison for fraud

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Thursday, December 19, 2024

Former bank executive sentenced to prison for fraud

Attorneys & Judges
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U.S. Attorney Robert J. Troester | U.S. Department of Justice

John Padilla, a former senior vice president at a federally insured bank in Lawton, Oklahoma, has been sentenced to 16 months in federal prison for bank fraud. The announcement was made by U.S. Attorney Robert J. Troester.

Padilla, aged 44, was charged on May 7, 2024, with executing a fraudulent scheme between February 2013 and December 2019. During his tenure as a commercial loan officer, he recruited borrowers to apply for loans under false pretenses. Many of these borrowers were friends and associates who were not creditworthy. Padilla assured them that the loan proceeds would be invested in his real estate ventures and promised them a share of the profits. However, most of the funds were used to support his gambling habit and to repay previous loans issued as part of the scheme. The fraudulent activities resulted in losses exceeding $1 million for the bank.

On June 17, 2024, Padilla pleaded guilty to recruiting an associate for a loan intended for his personal use.

U.S. District Judge Jodi W. Dishman handed down the sentence today, which includes three years of supervised release following imprisonment. In her remarks, Judge Dishman highlighted the severity and duration of Padilla's offenses against his long-time employer and noted the significant financial impact on the bank. Additionally, Padilla is required to pay restitution amounting to $1,092,135.50.

The case was investigated by the Federal Deposit Insurance Corporation – Office of Inspector General and the Federal Housing Finance Agency – Office of Inspector General. Assistant U.S. Attorney Charles Brown led the prosecution.

Further details can be found in public filings related to this case.

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