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Updated: 6:52 PM Sep 3, 2010
Prison Sentence for Helping VA Businessman Defraud Bank
ALEXANDRIA, Va. (AP) A former low-level executive at United Bank has been sentenced to 2 1/2 years in prison for helping a Virginia restaurateur defraud the bank of more than $17 million.
Posted: 8:00 PM Sep 3, 2010 |
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A former low-level executive at United Bank has been sentenced to 2 1/2 years in prison for helping a Virginia restaurateur defraud the bank of more than $17 million.
Sissaye Gezachew, who was an assistant vice president at United, pleaded guilty in June in federal court in Alexandria to helping businessman Osama El-Atari fill out bogus loan applications. El-Atari defrauded multiple banks out of more than $53 million and got 12 years in prison.
Gezachew, a 32-year-old Springfield resident, was assigned to a routine audit of El-Atari's loans. When Gezachew discovered several red flags, he suggested ways for El-Atari to conceal his fraud in exchange for $10,000.
United Bank has headquarters in Washington and Charleston, West Virginia. Its $17.6 million loss from the fraud is roughly equivalent to its average quarterly earnings.
©2010 The Associated Press. All rights reserved.
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