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Bank CEO Convicted of Corruption
A former bank CEO has been convicted of using his position to secure a high-level position in the presidential administration in exchange for approving millions of dollars in loans.
STEPHEN M. CALK, the former chairman and chief executive officer of The Federal Savings Bank, was convicted of financial institution bribery and conspiracy to commit financial institution bribery.
Calk’s scheme involved approving $16 million in loans to Paul Manafort, a lobbyist and political consultant, in exchange for Manafort’s assistance in obtaining a senior position in the presidential administration.
According to prosecutors, Calk believed that Manafort could use his influence with the Presidential Transition Team to assist Calk in obtaining a senior administration position.
Calk’s corruption scheme was uncovered after a three-week trial before U.S. District Judge Lorna G. Schofield.
The conviction sends a strong message that corruption at the highest levels of federally regulated financial institutions will be prosecuted, said Manhattan U.S. Attorney Audrey Strauss.
Calk’s actions were described as using the federally-insured bank he ran as his personal piggybank to try and buy himself prestige and power.
The case highlights the importance of holding those in power accountable for their actions and demonstrates the Office’s commitment to rooting out corruption at all levels.
Key Facts
- State: New York
- Category: Public Corruption|White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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