Bank executive sentenced to 8 years behind bars in bailout’s biggest criminal case

[n2doc]

In 2009, less than a year after its $300 million taxpayer-funded rescue, the United Commercial Bank burned through the cash to become America’s first bailout-boosted bank to fail during the financial meltdown.

But this week, one of the imploded bank’s former senior executives was sentenced to eight years in prison for covering up its collapsing loans, becoming one of the few high-ranking bankers to face punishment for crisis-era crimes.

Ebrahim Shabudin, a former chief credit officer for the San Francisco-based bank, falsified records to hide major loan losses from auditors and investors in what prosecutors called a “delay-and-pray” scheme, even as the bank sought and pocketed cash from the Troubled Asset Relief Program, or TARP.

The bank, which once managed nearly $11 billion in assets and ran more than 50 branches across the United States, China and Taiwan, became the ninth largest to fail since 2007 even with help from the multitrillion-dollar bailout. Its dramatic failure cost the federal fund that insures Americans’ deposits more than $675 million.


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http://www.washingtonpost.com/news/business/wp/2015/09/02/bank-executive-sentenced-to-8-years-behind-bars-in-bailouts-biggest-criminal-case/

Amazing! I didn't think I would see the day when a bankster got nailed for fraud. More, please.

[WillyT]

1. HUGE K & R !!! - THANK YOU !!!

[corkhead]

2. it's not a guillotine, but I am willing to accept this compromise

I wonder if there are plans to seize any ill gotten gains he most likely stashed in Switzerland or the Caymans.

[Lochloosa]

3. One down...thousands to go.

[procon]

4. There should be a very long line of banksters queued up and

waiting their turn at doing the perp walk down to the intake desk at Club Fed.

[uponit7771]

5. wow!! there are prolly hundreds of these guys that cooked books to hide loan losses!! They had to,..

...home prices were nose diving and instead of doing simple cma's they prolly wrote in numbers from appraisers who weren't valuing the homes correctly themselves!!!

This is a start... start

[7962]

6. Its a start. There should be a lot more. Even a couple locally in my area. nt

[hobbit709]

7. Pocket change money compared to the big banks, which they didn't go after.

[hifiguy]

9. According to Nomi Prins' "It Takes A Pillage"

the total amount of cash received by the banks - mostly the too-big-to-fail banks - from all sources including the massive infusions of easy money from the Fed (which the banksters sat on or used to buy other banks), direct subsidies, and government guarantees of every shitty asset under the sun with absolutely NO STRINGS ATTACHED was - wait for it -

$13 TRILLION. Tjat is trillion with a T.

According to her every bad mortgage during that time could have been for 10% of that - about $1.5 trillion.

[Unknown Beatle]

8. I would really love to see

Jamie Dimon and Lloyd Blankfein behind bars. These two assholes are are so blatantly corrupt that I'm surprised nothing has been done about their malfeasance.

[hifiguy]

10. They are far too connected to powerful people

to ever see justice. Though a tumbrel ride to the guillotine seem the perfect ticket for both of those snakefucking greedhead assholes.

[Flying Squirrel]

11. Ebrahim Shabudin?

Get back to me when someone with an English-sounding name is prosecuted.

[Stinky The Clown]

12. Meh . . . the proverbial fart in a windstorm.

Where are the really big fish?

[Dont call me Shirley]

13. It's a start, but he's small fry.