A federal grand jury has indicted the former president of a failed Oklahoma bank on charges of defrauding the institution through a years-long scheme involving fake loans to friends and neighbors.
Danny Seibel, 54, who led First National Bank of Lindsay until his termination last year, faces up to 30 years in prison for allegedly manipulating bank records and using the bank’s own funds to conceal bad loans from federal regulators.
According to the indictment, Seibel served as president and CEO from February 2007 until September 2024.
He allegedly issued loans to personal friends and neighbors who never repaid them, then covered up the defaults through fraudulent transfers and false documentation.
The scheme allegedly involved creating new loans or using bank funds to mask overdrafts on existing bad loans. Seibel then falsified reports to make the loans appear healthy to both regulators and the bank’s board of directors.
When Office of the Comptroller of the Currency examiners arrived for an on-site inspection last summer, Seibel allegedly provided them with fake documents. These concealed hundreds of changes he had made to the loan data.
The indictment also charges Seibel with failing to implement the required anti-money-laundering safeguards. He allegedly advised customers to keep cash deposits below $10,000 to avoid federal reporting requirements and never filed suspicious activity reports on his own fraudulent scheme.
The OCC appointed a receiver for the bank in October 2024, shortly after Seibel’s termination.
Federal prosecutors from the Justice Department’s Money Laundering section are handling the case alongside investigators from multiple agencies. These include the FDIC’s Office of Inspector General, the FBI, the IRS Criminal Investigation, and the Federal Housing Finance Agency’s inspector general.
If convicted on all counts, Seibel faces maximum penalties of 30 years in prison and $1 million in fines. The charges include conspiracy to commit bank fraud, making false entries in bank records, obstructing examinations, and violating the Bank Secrecy Act.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
