Kentucky Bank Officer Sentenced In Multi-Million Dollar Bank Fraud

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A former Vice President of PBI Bank in Lexington, Kentucky was sentenced to two years in federal prison after pleading guilty to helping three other people defraud the bank.

Joseph Tobin, 45, admitted to six counts of aiding and abetting bank fraud and one count of bank fraud. Previously sentenced were Daniel Sexton to 109 months, Jonathan Williams to 60 months, and Sheila Flynn to 24 months in prison for their roles in the fraud.

According to the U.S. Justice Department, Sexton and Williams owned and operated several mobile home businesses in Georgetown, Kentucky. Flynn worked at those businesses as an office manager. Tobin was Vice President at PBI Bank, which was receiving funds through the federal Troubled Assets Relief Program.

Sexton, Williams, and Flynn allegedly conspired to obtain various bank loans using false documents. They also failed to disclose debts they owed to others in their loan applications. Tobin knew that the loan applications were fraudulent but approved them anyway.

Sexton and Williams also recruited other people to take out loans from PBI Bank then direct the money to them. Tobin approved these loans even though he knew that Sexton and Williams were the true borrowers. Tobin also set up a straw loan for another borrower.

Read more here: lex18.com


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