Former CEO of failed Okla. bank indicted on fraud charges

Core Insights - A federal grand jury has indicted Danny Seibel, CEO of the failed First National Bank of Lindsay, on bank fraud charges, facing up to 30 years in prison and a fine of up to $1 million if convicted [1][3] - The indictment includes 18 counts, detailing Seibel's actions in making numerous unrepayable loans to friends and concealing the bank's financial condition [2][3] Summary by Sections Indictment Details - Seibel is charged with bank fraud, conspiracy to commit bank fraud, obstructing financial examinations, making false bank entries, and failing to maintain an anti-money laundering program [3] - He allegedly falsified documents and manipulated reporting systems to hide the true status of loans and overdrafts, reporting overdrafts of $170,000 when they were actually $1.36 million [4] Financial Misconduct - Seibel, as the Bank Secrecy Act officer, advised clients to make cash deposits below $10,000 to evade reporting requirements and executed transactions that should have been flagged as suspicious [5] - The indictment highlights his assistance to three local business owners, including a gambling auto dealer and an HVAC business owner servicing marijuana grow houses [6] Bank Failure Impact - The failure of First National Bank cost the FDIC's Deposit Insurance Fund $42.3 million, attributed to a critical breakdown in internal controls [8][10] - First National was one of two bank failures in 2024, with its deposits assumed by First Bank & Trust Co. [9] Future Outlook - The Office of the Comptroller of the Currency is conducting a more in-depth review of First National's failure, expected to be completed soon [10]