Former Bank Executive Vice President Pleads Guilty to Making False Financial Report to FDIC in Connection with Failure of Freedom State Bank
Oklahoma City, Oklahoma – MARK A. NIXON, 62, from Freedom, Oklahoma, pleaded guilty yesterday to submitting a falsified report of the financial condition of Freedom State Bank to the Federal Deposit Insurance Corporation (“FDIC”), announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Nixon’s guilty plea comes approximately six months after the Bank’s failure on June 27, 2014.
Nixon was the former Executive Vice President of The Freedom State Bank, located in Freedom, Oklahoma. During his plea hearing, Nixon admitted to preparing and submitting a Consolidated Report of Condition and Income to the FDIC which falsely stated that The Freedom State Bank possessed $21,950,000.00 in assets, when he in fact knew that the true amount was substantially less.
Nixon was charged on December 4, 2014, with one count of submitting a false statement to the FDIC. In a written plea agreement, Nixon admitted that he was responsible for causing between $1,000,000.00 and $2,500,000.00 in losses to The Freedom State Bank, and agreed that he is subject to a sentencing enhancement for substantially jeopardizing the soundness of a financial institution.
At sentencing, Nixon faces up to five years in prison, followed by three years of supervised release, and a $250,000.00 fine. He will also be ordered to pay restitution to the FDIC in an amount later determined by the court. A sentencing hearing will be set by the court in approximately 90 days.
This case is the result of an investigation by the FDIC Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Julia E. Barry.