A man who aided the obstruction of an FDIC examination was sentenced on June 13, 2019, to one year and one day in federal prison.
Martin Smith, age 39, from Center Point, Iowa, received the prison term after an August 27, 2018 guilty plea to aiding and abetting the obstruction of an FDIC investigation.
Smith worked as a bank vice president from 2009 to 2012. Information at sentencing showed that, during a December 2011 FDIC examination, Smith made it appear as though a borrower’s delinquent loans had been refinanced several months prior, which kept regulators from scrutinizing those loans as part of the exam. Information at sentencing also showed that Smith changed due dates and allowed unauthorized advances on other loans, ultimately causing the bank to incur more than $1 million in losses on loans that the bank never formally authorized and, in some circumstances, never even memorialized.
Smith was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Smith was sentenced to 12 months’ and one day imprisonment. He was ordered to make $1,270,132.97 in restitution. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Smith was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Jacob Schunk and investigated by the Federal Deposit Insurance Corporation Office of Inspector General and the United States Secret Service.
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Editor's Note: The name of the bank wasn't included in the press release. However from an older press release in August of last year it said the following:
A former vice president at Center Point Bank & Trust who aided and abetted the obstruction of an FDIC examination pled guilty on August 27, 2018.
Martin Smith, age 38, from Center Point, Iowa, was convicted of Aiding and Abetting the Obstruction of the Examination of a Financial Institution. At the plea hearing, Smith admitted that he backdated a refinancing loan to obstruct an FDIC investigation.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Smith remains free on bond previously set pending sentencing. Smith faces a possible maximum sentence of 5 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Jacob A. Schunk and was investigated by the FDIC Office of Inspector General and the United States Secret Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 1:18-cr-00076-LTS.