LITTLE ROCK, Ark. (AP) - A federal grand jury has indicted a Little Rock bank executive on a variety of charges related to an alleged scheme to cover up a $1.5 million bad loan.
U.S. Attorney Christopher Thyer said Wednesday that 56-year-old Gary Alan Rickenbach, a loan executive with Little Rock-based Onebanc, is charged with conspiracy to commit fraud, misapplication of bank money, making false entries, obstruction and money laundering.
Investigators say Rickenbach made loans to entities he owned or controlled to hide the true health of the bank, thus deceiving federal regulators about the institution’s financial condition.
The bank wound up getting more than $17 million through the Troubled Asset Relief Program in 2009, which the indictment says hasn’t been repaid.
Rickenbach could be sentenced to up to 20 years in prison.
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