SAN ANTONIO (CN) – The former president of LaCoste National Bank was sentenced to 5 years in federal prison for falsifying bank records and ordered to pay $8.3 million in restitution.
Jody Gwyn was sentenced in Federal Court after pleading guilty to making false entries in the bank’s general ledger in September 2008, to deceive bank examiners about bad loans the nearly 100-year-old bank had made.
Prosecutors said Gwyn’s false entry noted a $2.5 million loan to people, though the money had been loaned to someone else.
Gwyn’s actions resulted in the bank’s collapse in February 2010, prosecutors said. It was closed and placed in receivership with the FDIC.
Community National Bank, of Hondo, Texas, took over its assets.