Former First National Bank of Lindsay (FNBL) President and CEO Danny Seibel pleaded guilty on Thursday to one count of bank fraud. A federal district court judge will determine his sentence, but Seibel faces up to 30 years in prison and a fine of up to $1 million.
On Oct. 18, 2024, the Office of the Comptroller of the Currency (OCC) closed the bank after it identified false and deceptive bank records and other information suggesting fraud. The OCC found the bank’s capital was less than its obligations to its creditors and others and that the bank was in an unsafe or unsound condition to transact business.
The OCC referred the case to the United States Department of Justice. All insured deposits were transferred to First Bank & Trust Co., Duncan, Okla.
Seibel was an FNBL executive from in or around February 2007 until his termination in September 2024. According to court documents, he had the bank issue loans that the borrowers never repaid. Many of the borrowers were his friends and neighbors. For each loan, Seibel manipulated the bank’s records and falsified various bank reports to overstate the performance of the loans.
A sentencing date has not been set.