Federal Deposit Insurance Corporation
Office of Inspector General

Former Bank Vice President Who Aided the Obstruction of an FDIC Investigation Sentenced to Federal Prison

United States Department of Justice
United States Attorney’s Office, Northern District of Iowa
PRESS RELEASE
Press Release

FOR IMMEDIATE RELEASE

Friday, June 14, 2019


Former Bank Vice President Who Aided the Obstruction of an FDIC Investigation Sentenced to Federal Prison

 

Court Also Ordered Defendant to Pay More than $1.2 Million in Restitution

A man who aided the obstruction of an FDIC examination was sentenced on June 13, 2019, to one year and one day in federal prison. 

Martin Smith, age 39, from Center Point, Iowa, received the prison term after an August 27, 2018 guilty plea to aiding and abetting the obstruction of an FDIC investigation. 

Smith worked as a bank vice president from 2009 to 2012.  Information at sentencing showed that, during a December 2011 FDIC examination, Smith made it appear as though a borrower’s delinquent loans had been refinanced several months prior, which kept regulators from scrutinizing those loans as part of the exam.  Information at sentencing also showed that Smith changed due dates and allowed unauthorized advances on other loans, ultimately causing the bank to incur more than $1 million in losses on loans that the bank never formally authorized and, in some circumstances, never even memorialized.  

Smith was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams.  Smith was sentenced to 12 months’ and one day imprisonment.  He was ordered to make $1,270,132.97 in restitution.  He must also serve a 3-year term of supervised release after the prison term.  There is no parole in the federal system.

Smith was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.

The case was prosecuted by Assistant United States Attorney Jacob Schunk and investigated by the Federal Deposit Insurance Corporation Office of Inspector General and the United States Secret Service.  

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl

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