Ex-CEO Jailed For Cover-Up Of InsiderLoan Scheme

January 09, 2006, 1:00 a.m. EST 1 Min Read

AMARILLO, Texas - (10/09/06) The former president ofBurlington Northern Santa Fe CU was sentenced to more than twoyears in jail Friday for lying to investigators probing allegationsthat she and a former employee covered up $127,000 in insider loansto her family. Barbara Dunn pleaded guilty in September to makingfalse statements to a federal credit union. She was charged withmaking a false report of delinquent loans. Dunn was sentenced to 27months in federal prison and ordered to pay the credit union$127,000 in restitution. Prosecutors said Dunn ordered an employeeto change due dates on outstanding loans extended to Dunn and herfamily in order to mislead NCUA investigators by showing falselythat the loan payments were up to date, when, in fact, they weredelinquent. The employee, Sarah Lockwood, pleaded guilty Thursdayto making false statements to a federal agency.

For reprint and licensing requests for this article, click here.

MORE FROM AMERICAN BANKER

Federal Reserve

Fed points to market froth as leading stability risk

In its latest financial stability report, the Federal Reserve found that asset valuations continue to be elevated and leverage levels remain high, especially among nonbanks like hedge funds and insurance firms.

By Maria Volkova

12m ago
Stablecoin

Fed's Miran: Stablecoin uptake bolsters case for rate cuts

Federal Reserve Board Gov. Stephen Miran said the growth of stablecoins and cryptocurrencies will likely impact monetary policy and could lead to lower interest rates.

By Kate Berry

36m ago
Commercial banking

Santander launches portal for U.S. businesses going global

The Spanish bank says it can connect small and medium-size U.S. businesses with local market experts on its newly launched digital platform Navigator Global.

By Melinda Huspen

1h ago
PNC Financial Services Group

PNC boosts branch investment to $2B, plays down more M&A

The Pittsburgh-based bank said Friday that it will focus on building 300 branches in high-growth markets by 2030. It also minimized the prospects for another acquisition on the heels of its recent deal for Colorado-based FirstBank.

By Catherine Leffert

1h ago
Buy now pay later

Affirm 'firing on all cylinders' with earnings beat

Consumers' and merchants' penchant for 0% loans are boosting the buy now/pay later lender in its first fiscal quarter ended Sept. 30, as gross merchandise volume hit a record.

By Joey Pizzolato

1h ago
Industry News

Activist investor drops recent proxy battle threats

HoldCo Asset Management drops its pursuit of proxy battles with Columbia Banking System and First Interstate; Cape Cod's Mutual Bancorp prepares to acquire Bluestone Bank; Servbank HoldCo announces plans to acquire IF Bancorp; and more in this week's banking news roundup.

By Editorial Staff

1h ago