The former CEO of TierOne Bank, Gilbert G. Lundstrom, was given an 11-year prison sentence for fraud during the housing crisis.
Lundstrom was convicted of “orchestrating a scheme to hide more than $100M in losses from shareholders and regulators,” according to the US Department of Justice.
Evidence in the trial showed that Lundstrom put together a strategy expanding TierOne’s portfolio into riskier areas of lending, like Las Vegas commercial real estate, which plummeted during the financial crisis.
Lundstrom masked the losses by giving shareholders and the SEC inflated earnings figures, along with misrepresenting TierOne’s capital ratios and reserves.
Back in 2014 Lundstrom's partners in crime James Laphen, TierOne’s former COO, and Don Langford, TierOne’s former chief commercial officer, pleaded guilty for their parts in the scheme, and will be sentenced soon as well.
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