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Justice News

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

Thursday, October 13, 2016

Former Bank President Mark Warne Sentenced To 78 Months Imprisonment

HAMMOND- United States Attorney David A. Capp announced that Mark Warne, 46, of Brook, Indiana was sentenced before Chief Judge Philip Simon following his guilty plea to Bank Fraud.

Warne was sentenced to 78 months’ imprisonment, 2 years supervised release and ordered to pay $3, 410,223 in restitution.

According to document in this case, Warne, a former President of Community State Bank, devised a scheme to defraud the bank.  Warne caused Community State Bank to issue over six million dollars in fraudulent loans.  Warne obtained 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.

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.


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Financial Fraud
Updated October 13, 2016