Former President of the First National Bank of Lindsay, Danny Seibel, aged 54, has been indicted on multiple counts of bank fraud and other related charges. The indictment alleges that Seibel was involved in a fraudulent scheme that persisted from February 2007 until his termination in September 2024. If convicted, he faces a potential sentence of up to 30 years in federal prison and fines that could reach $1 million, according to a statement from the U.S. Attorney’s Office.
Seibel held various management roles during his tenure at the bank, including Chief Financial Officer and Bank Secrecy Act Officer. The indictment reveals troubling allegations that he issued loans to personal acquaintances without repayment and subsequently manipulated bank records to conceal these transactions. Despite his responsibilities to maintain financial integrity, Seibel is accused of making numerous unauthorized changes to loan data, evading scrutiny from the Office of the Comptroller of the Currency (OCC), the bank’s federal regulator, as well as the bank’s Board of Directors.
The indictment also highlights significant breaches of Seibel’s responsibilities, particularly in relation to anti-money laundering programs. Specific claims include failing to report suspicious activities connected to his scheme and advising customers to make deposits below $10,000 to bypass mandatory reporting requirements. Seibel’s actions, especially his alleged attempt to obstruct an OCC examination by submitting false documents during a regulatory review in 2024, are said to have contributed to the bank’s eventual downfall. The OCC placed the bank into receivership in October 2024.
The indictment was announced by Acting Assistant Attorney General Matthew R. Galeotti, along with other federal officials. The investigation is being conducted by several agencies, including the FDIC-OIG, FBI, IRS-CI, and FHFA-OIG, with prosecution led by Assistant U.S. Attorneys Julia E. Barry and Jackson D. Eldridge, along with Trial Attorneys Mark Goldberg, Ryan McLaren, and Elysa Wan from the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section. This unit is dedicated to protecting financial institutions and the broader economic system from internal corruption, according to the U.S. Attorney’s Office.
It is crucial to emphasize that an indictment does not equate to a finding of guilt. Seibel, like any defendant, is presumed innocent until proven guilty in court. Nevertheless, this case serves as a stark reminder of the profound trust placed in individuals in positions of power within financial institutions and the severe implications when that trust is violated. As the legal proceedings unfold, further details regarding the trial are expected to emerge.