Mortgage News March 7, 2023
Brady Torgerson, First Security Bank-West’s former president, received a two-year prison sentence for two counts of bank fraud he committed between 2019 and 2021 while working as a loan officer for Union Bank and the North Dakota-based bank. There were also three others sentenced for their involvement in the fraud.
During his tenure as First Security Bank-West president, Torgerson authorized loans without collecting necessary security interest documents, financial information, or promissory notes according to the North Dakota District U.S. Attorney’s Office.
In addition, the 35-year-old former executive deceptively entered false information into the bank’s computer system for the purpose of increasing loans beyond their original amounts, extending loan maturity dates, and concealing his actions.
The most notable fraudulent loans Torgerson created were those of more than $450,000 at Union Bank, according to U.S. Attorney Mac Schneider. About half of these loans were created under three different individuals who were unaware of the loans or never received the funds described in them.
After pleading guilty on August 2022 to two charges of bank fraud, Torgerson was arrested for the offenses last November 2022.
Brent Torgerson and Kelly Huffman were sentenced to a $5,000 fine on charges of bank funds misapplication, time served (one day in custody), and supervised release for one year. Tyler Hofland received a sentence of $98,163 in damages, time served (one day of processing), and supervised release for one year on a charge of conspiracy to commit bank fraud.
The investigation of this case was conducted by the Office of Inspector General (FDIC-OIG) of the Federal Deposit Insurance Corporation, the Office of Inspector General (FHFA-OIG) of the Federal Housing Finance Agency, and the Office of Inspector General of the Federal Reserve Board and the prosecution was done by Assistant U.S. Attorney Jonathan O’Konek.
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