Two former Bank of Oswego executives convicted of conspiracy to commit bank fraud
Posted November 28, 2017 5:08 p.m. EST
LAKE OSWEGO, OR — Two former Bank of Oswego executives were convicted of conspiracy to commit bank fraud.
A jury also found Dan Heine and Diana Yates guilty Tuesday on charges of falsifying bank entries, reports and transactions.
Investigators said Heine was a co-founder of the bank, which was based in Lake Oswego, and served as president, chief executive officer and a member of the board of directors from 2004 to 2014.
Yates, also a co-founder, was the executive vice president, chief financial officer and secretary of the board of directors for the bank from 2004 to 2012.
The Department of Justice stated the pair, "concealed the true financial condition of the bank to regulators and the board of directors by falsely reporting that the bank had title to a property in a straw buyer transaction, falsely reporting that delinquent loans were paid and falsely reporting the sale of bank owned property."
The schemes went on for five years beginning in September 2009, according to investigators.
Each of their convictions carries a maximum sentence of 30 years in federal prison.
Sentencing is set for March 5, 2018, in Portland.
The case was investigated by the FBI and the Federal Deposit Insurance Corporation Office of Inspector General, and prosecuted by Quinn Harrington and Michelle Kerin, assistant U.S. attorneys for the District of Oregon.