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Justice News

Department of Justice
U.S. Attorney’s Office
Northern District of Indiana

FOR IMMEDIATE RELEASE
Thursday, February 18, 2016

Former Bank President Indicted

HAMMOND- United States Attorney David A. Capp announced today that an Indictment was filed charging Mark Warne, 46, of Brook, Indiana with ten counts of Bank Fraud and four counts of Identity Theft.

According to the Indictment, Warne, a former President of Community State Bank, allegedly devised a scheme to defraud the bank.  Warne allegedly caused Community State Bank to issue over six million dollars in fraudulent loans.  Warne is alleged to have obtained the loans using the identities of four known individuals, three of whom were related to Warne and none of whom received any of the proceeds of the loans.

The Indictment further alleges that Warne concealed the loans from bank board members by creating two sets of minutes for the meetings of the board of directors, one for the bank’s board of directors to read and approve and second for the Federal Deposit Insurance Corporation (FDIC) examiners to review.  While the minutes shown to the FDIC examiners made it appear as if the bank’s board of directors was aware of the loans, the actual board minutes made no mention of the loans. Warne served as President of Community State Bank from on or about September of 2010 to September of 2015.  Warne’s employment with Community State Bank ended after his scheme to defraud the bank was uncovered.

This case was investigated by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation, Office of Inspector General.  The case is being prosecuted by Assistant United States Attorneys Joshua P. Kolar and Abizer Zanzi.

The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.

If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

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Topic: 
Financial Fraud
Identity Theft
Updated February 19, 2016