Bank Loan Officer Admits Fraud Scheme

Allison Tussey —  June 21, 2011 — Leave a comment

Donna Shebetich, 46, Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of making a false entry in bank records.  The defendant pleaded guilty to one count before United States District Judge Arthur J. Schwab.

In connection with the guilty plea, the court was advised that Shebetich, while employed as a Vice President, Director, and loan officer for Metropolitan Savings Bank (MSB), Pittsburgh, Pennsylvania, a financial institution insured by the Federal Deposit Insurance Corporation (FDIC), electronically filed with the FDIC, as required, a quarterly report, commonly referred to as a “Call Report,”for the quarter ended Sept. 30, 2006, which falsely and significantly under—˜reported mortgage loans which were outstanding and which were delinquent for 30 or more days for the purpose of deceiving the FDIC and its examiners. The Call Report submitted by Shebetich indicated that MSB had $0.00 in mortgage loans on which payments were overdue, when in truth, the books and records of the bank indicated that in excess of $7,000,000 in mortgage loans had payments outstanding for 30 days or more. The FDIC closed MSB on Feb. 2, 2007, after the FDIC conducted an on—˜site audit of the bank.

Judge Schwab scheduled sentencing for Nov. 18, 2011, at 9:30 a.m. The law provides for a total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.

United States Attorney David J. Hickton announced the guilty plea.

Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.

The Federal Deposit Insurance Corporation and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Shebetich.


Allison Tussey

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