3 ex TierOne Bank execs charged with hiding losses
OMAHA, Neb. (AP) _ Three former TierOne Bank executives have been charged with concealing millions of dollars in real estate losses and misleading investors during the Great Recession. The Securities and Exchange Commission announced the civil charges Tuesday against former CEO Gil Lundstrom, former President James Laphen and former chief credit officer Don Langford. Lundstrom's son, Trevor Lundstrom, was also charged with insider trading.
All but Langford agreed to settlements, and the Lundstroms and Laphen agreed to pay nearly $1.2 million.
The SEC says TierOne relied on outdated appraisals on real estate the bank had repossessed or had loans on that inflated the value. The Lincoln, Neb.-based bank understated its losses by millions of dollars in 2008 and 2009. Federal regulators closed TierOne in June 2010 and sold its assets to Great Western Bank.
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