LINCOLN, Neb. (AP) — The founder and former chief executive officer of TierOne Bank has been found guilty of 12 counts related to the bank's failure in 2010.
The Lincoln Journal Star reports (http://bit.ly/1iHWCa9 ) that a federal jury found Gil Lundstrom guilty Friday of fraud and conspiracy counts. Prosecutors say Lundstrom orchestrated a scheme to hide the bank's losses from regulators and investors.
Regulators took over Lincoln-based TierOne in 2010, saying the bank had too many bad loans on its books and lacked sufficient capital to cushion losses. Lundstrom testified at his trial that he never knowingly provided false information to investors or federal regulators.
Lundstrom will remain free until he's sentenced on Feb. 24, possibly to decades in federal prison.
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Information from: Lincoln Journal Star, http://www.journalstar.com
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