FORMER WOODBINE BANKER SENTENCED TO PRISON
(COUNCIL BLUFFS) A former Woodbine banker was sentenced to federal prison for fraudulent loan practices.
According to the U.S. Attorney’s Office, On May 20th, 59-year-old Kenneth W. Wait was sentenced to 18 months in prison by John A. Jarvey, U.S. District Court Judge for the Southern District of Iowa, for making a false loan application to Commercial Federal Bank, his past employer, for the purpose of obtaining a 2.3 million dollars line-of-credit for some distressed customers.
A grand jury returned an indictment on August 5th, charging Waite with 50 different financial crimes, including misapplication of bank funds, making false bank entries, and making false statements to a bank. He proceeded to trial in Council Bluffs on January 31st. In the midst of trial, Waite pleaded guilty to count 50 of the indictment, which charged him with knowingly making false statements for the purpose of influencing the action of the executive loan committee of Commercial Federal Bank by submitting a false loan application to renew and increase the existing revolving line of credit of some local cattle feeders.
None of the customers knew of Waite’s actions. Commercial Federal’s successor, Bank of the West, discovered the scheme soon after acquiring the Woodbine bank, and eventually had to charge off a $3.3 million loss on the account due to Waite’s actions.