Two more bank execs headed to prison for fraud

by Ryan Smith28 Mar 2016
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.

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.


  • by T | 3/28/2016 1:06:08 PM

    these three are small time, but 2 sets of books are a big problem - need to set an example.

    Are we working our way up to Angelo Mozilo and Chris Dodd?

  • by | 3/28/2016 2:07:17 PM

    Make me a believer and go after Angelo Mozilla, Steve Moynihan, and some of the big players. There are so many guilty parties a new Federal Prison would have to be built..........say....I think I Just came up with a good use for Guantanamo Bay in Cuba.

  • by ABBM | 3/29/2016 2:32:40 PM

    They probably followed guidelines but the mortgages all fell apart and they tried to hide the loss though loss wasn't their fault. They never should have tried to cover up someone else's mistakes. Show the ugly truth and pin it where it belongs. Who wrote the guidelines? BAD paper was sold but guidelines were followed otherwise it wouldn't have been purchased.


Should CFPB have more supervision over credit agencies?