A former vice president of PBI Bank in Lexington was sentenced Friday to two years in federal prison for helping three other people defraud the bank.
Joseph Tobin, 45, had pleaded guilty Feb. 3 to six counts of aiding and abetting bank fraud and one count of bank fraud, according to acting U.S. Attorney Carlton Shier IV’s office.
U.S. District Court Judge Danny Reeves had previously sentenced Daniel Sexton to nine years, Jonathan Williams to five years and Sheila Flynn to two years for their roles in the fraud. All three are serving their sentences in federal prisons.
Sexton and Williams owned and operated several mobile home businesses in Georgetown. Flynn worked at those businesses as an office manager. Tobin was vice president at PBI Bank in Lexington.
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Sexton, Williams and Flynn conspired together to obtain various bank loans using false corporate accounting records, false tax records and false appraisals for assets such as a private plane, according to the U.S. Attorney’s office.
They also failed to disclose debts they owed to others in their loan applications. Tobin knew the loan applications were fraudulent but approved them anyway.
Sexton and Williams also recruited other people to take out loans from PBI Bank then direct the money to them. Tobin approved the loans even though he knew that Sexton and Williams were the true borrowers. Tobin also set up a straw loan for another borrower.
In addition to their prison sentences, Reeves ordered the four defendants to pay restitution to four victimized banks. Sexton and Williams were each ordered to pay more than $2.6 million in restitution. Tobin is responsible for $185,000 and Flynn for more than $1.4 million, according to the U.S. Attorney’s office.