Federal indictment accuses Purdum man of bank fraud
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By The Associated Press
OMAHA — A Sandhills banker faces federal indictments that he defrauded his bank, the U.S. Attorney’s Office said Thursday.
In a news release, prosecutors said Michael Moody, 45, of Purdum had, over a five-year period that ended in November 2006, falsified financial statements and livestock investment reports in order to make loans for Purdum State Bank.
Moody was vice president and a director of the bank.
Prosecutors said the fraud cost the bank more than $483,000.
The office also said that on or about Jan. 14, 2006, Moody lied in a bank document, reporting livestock collateral that he knew didn’t exist.
The maximum penalty for either charge is 30 years in prison, a $1 million fine and three years of parole.
A call by The Associated Press to a Purdum number listed for Moody was not answered Thursday.
Bank President Sherry Mulligan said Moody left the bank’s employ in November 2006.
She referred further questions to the bank’s attorney, who did not immediately return a call from The Associated Press.
According to Associated Press files, the bank reported loan losses for 2001, blaming a downturn in the economy, particularly in the cattle industry.
A bank president at the time said some borrowers had declared bankruptcy.
In June 2002 the Federal Deposit Insurance Corp. issued a cease-and-desist order, saying the FDIC had reason to believe the bank “had engaged in unsafe and unsound banking practices and violations of law and regulation.’’
The bank agreed to a federal consent agreement that included several remedies. The FDIC lifted the cease-and-desist order three years later.
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