Indicted bank leader accused of hiding bad loans and misconduct.
A federal grand jury in Oklahoma brought charges against the former president of a small-town bank after investigators said he played a central part in a long-running scheme that harmed the institution he was trusted to lead. The indictment describes years of conduct that allegedly placed the First National Bank of Lindsay at risk, hid the bank’s true financial state, and misled federal regulators, board members, and others who relied on accurate information. The case centers bank leader Danny Seibel, a longtime figure at First National who held several top roles, including President, Chief Executive Officer, Chief Financial Officer, and the officer in charge of following the Bank Secrecy Act. Prosecutors said he used that authority to cover up failing loans, move money without proper approval, and hide key facts from regulators.
According to the indictment, Seibel approved loans for people who were part of his personal circle, even though many of those borrowers were not paying back prior debts. When the loans fell behind, he allegedly changed records and created new entries to make the loans appear healthier than they actually were. Prosecutors said this created a false picture of the bank’s loan portfolio and made it seem as though the institution was performing better than it really was. Some of the changes involved shifting the bank’s own funds to hide overdrafts or using new loans to mask unpaid debt. Over time, this conduct allegedly built a pattern of hidden losses that federal regulators were not able to see during routine reviews.
During a regulatory visit in the summer of 2024, the Office of the Comptroller of the Currency examined the bank’s records, but the indictment says Seibel gave the agency a misleading document. That document reportedly hid hundreds of changes he had made to loan data. Investigators believe the information was altered in a way designed to prevent federal staff from discovering the problems that had piled up over the years. Along with that, the bank leader indictment states that Seibel did not carry out his legal duties under the Bank Secrecy Act. That law requires financial institutions to watch for signs of money laundering or suspicious behavior. Prosecutors said he never filed reports about his own conduct and even coached customers on how to make cash deposits below the reporting limit.
The situation reached a point in October 2024 when the bank’s condition required the appointment of a receiver. After that step, investigators from several federal agencies examined the bank’s operations in detail. The indictment of the bank leader outlined charges connected to bank fraud, conspiracy, false entries, obstructing a federal examination, and failing to set up an anti-money laundering program. If found guilty, Seibel could face decades in prison and a large financial penalty. Federal officials stressed that an indictment is only an allegation and that anyone charged in federal court is presumed innocent unless guilt is proven.
The case is being handled by teams from several agencies, including the Federal Deposit Insurance Corporation Office of Inspector General, the FBI, IRS Criminal Investigations, and the Federal Housing Finance Agency Office of Inspector General. Prosecutors from the Justice Department’s Money Laundering, Narcotics and Forfeiture Section and the U.S. Attorney’s Office for the Western District of Oklahoma are overseeing the case. The investigation continues as federal staff review records, digital files, and other evidence to determine the full scope of the alleged conduct. Officials said the case fits within a broader national effort to hold financial leaders accountable when their actions put banks or the larger financial system at risk.
Sources:
Former President of Failed Oklahoma Bank Indicted for Bank Fraud
‘I’m nailed to the wall’: Former Lindsay bank President Danny Seibel indicted for conspiracy, fraud
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