PORTLAND, Ore. (KOIN) — Dan Heine, the one-time CEO and president of the Bank of Oswego, was convicted Tuesday along with Diana Yates of conspiracy to commit bank fraud and falsifying bank entries, reports and transactions.
Heine and Yates were convicted by a federal jury on 13 charges, each carrying up to 30 years in prison, for a scheme that began in September 2009.
The 2 former top officials of the Bank of Oswego were indicted by a federal grand jury in 2015, when both were arrested — Yates in Oregon and Heine in Florida.
Yates was the Chief Financial Officer and Heine was the CEO. They conspired to deceive the bank’s board of directors over a 5-year period beginning in 2009 that the bank was in better financial shape than it was.
Investigators said the pair did this in a variety of ways, including using third-party proceeds to pay delinquent customer loans, mischaracterizing assets to the board and the FDIC and hiding information about loans to bank insiders. They also made false entries in their reports.
In a statement, US Attorney Billy Williams said:
“As the jury found today, Dan Heine and Diana Yates violated the law by deceiving the Bank of Oswego’s board of directors, customers, and federal regulators in an attempt to conceal the organization’s true financial condition. Together with our partners at the FBI and the Federal Deposit Insurance Corporation, we remain steadfast in our commitment to protecting the integrity of our financial system from fraudulent and corrupt banking practices.”
Both Heine and Yates are scheduled to be sentenced in Portland on March 5, 2018.