Former president of Indiana bank given 78-month prison sentence - WDRB 41 Louisville News

Former president of Indiana bank given 78-month prison sentence for fraud

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LOUISVILLE, Ky. (WDRB) -- A former bank president in Indiana has been sentenced to 78 months in prison after pleading guilty to bank fraud.

Mark Warne, 46, of Brook, Indiana, received the sentence, according to a news release from the U.S. Attorney's Office.

Officials say that in addition to 78 months in prison, Warne will be supervised for two years after he's released. He's also been ordered to pay $3,410,223 in restitution.

According to the news release, a case document stated that Warne was a former president of Community State Bank. Officials say he "devised a scheme to defraud the bank." Authorities say Warne "caused Community State Bank to issue over six million dollars in fraudulent loans."

Warne was able to obtain loans using the identities of four people, according to officials. Three of the people were related to Warne and none of them received funds from the loans, authorities say.

The news release states that Warne hid the loans from bank board members by making two sets of minutes for meetings of the board of directors. One set was for the bank's board of directors to read and approve. A second set was for examiners with the Federal Deposit Insurance Corporation to review.

Officials say minutes shown to FDIC examiners gave the appearance that the bank's board of directors had knowledge about the loans, but the actual board minutes did not mention the loans.

Authorities say Warne served as president of Community State Bank from September 2010 until September 2015. Warne's employment ended after his "scheme to defraud the bank was uncovered," officials say.

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