Former executives from the now-defunct Bank of San Pedro in Los Angeles could each face more than 100 years in prison for a fraudulent investment scheme that led to the bank's closing.
After a five-week trial that ended last month, U.S. Attorney Nora M. Manella said, Lance D. Oak, Keith M. Congleton, William P. Double, and Michael R. Kasino were convicted of defrauding Bank of San Pedro of millions of dollars.
The bank was shut down by the State Banking Department in July 1994.
The California Department of Financial Institutions said the four were found guilty of creating a bogus company that bought $12 million of mortgage loans from other institutions at 80% of face value, then sold them to the bank at full price.
The scam cost the bank about $2.3 million. The former executives are to be sentenced within 45 days.