- Associated Press - Wednesday, December 10, 2014

LINCOLN, Neb. (AP) - A former TierOne Bank officer has pleaded guilty to conspiracy, fraud and other crimes connected to the Lincoln-based bank’s collapse.

James Laphen pleaded guilty Monday to conspiracy to commit mail fraud and making false statements to the Securities and Exchange Commission. Prosecutors say he conspired with other senior executives to hide the bank’s true financial condition from shareholders, regulators, auditors and the public.

Laphen was the president and chief operating officer of TierOne between April 2002 and March 2010. He was later appointed CEO in March 2010, the Lincoln Journal Star (https://bit.ly/1yzM1za ) reported.

FDIC took over TierOne in 2010, saying the bank had too many bad loans on its books and lacked sufficient capital to cushion losses. The bank’s assets were sold to a South Dakota-based bank.

As part of his plea agreement, Laphen won’t be prosecuted for any other federal fraud crimes related to his time at TierOne, said attorney Henry Van Dyke of the U.S. Department of Justice.

Laphen could receive five years in federal prison when he is sentenced in February.

Another executive pleaded guilty in September to conspiring to commit securities fraud, wire fraud and making false entries in a bank’s books and record. Don Langford, the chief credit officer at TierOne, has not been sentenced yet.

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Information from: Lincoln Journal Star, https://www.journalstar.com

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