James Laphen, former president and COO of TierOne Bank, was sentenced last week to 34 months in prison, according to a HousingWire report. Don Langford, the bank’s former chief credit officer, was sentenced to 21 months.
“Senior bank officials who keep two sets of books will be held accountable for their crimes, and the court’s sentencing of two bank officials to prison today is proof of that,” said Christy Goldsmith Romero, special inspector general for TARP.
According to authorities, Laphen and Lundstrom conspired with former bank CEO Gilbert Lundstrom to cover up loan losses. Langford helped create a second set of books for regulatiors – “one that hid astronomical write-downs in loans,” according to Romero.
Lundstrom was sentenced to 11 years
in prison last week for orchestrating the conspiracy. TierOne was shut down by the FDIC in 2010.
Two more executives from a collapsed bank are headed to federal prison for their roles in a conspiracy to conceal more than $100 million in losses on loans and real estate.