Jack Poulsen, Bank Fraud, Nebraska 2024

Ericson, Nebraska - In a shocking turn of events, Jack Poulsen, former president of Ericson State Bank, pleaded guilty to bank fraud in front of United States Magistrate Judge Jacqueline M. DeLuca. Poulsen, 71, of Ericson, Nebraska, faces a maximum possible penalty of 30 years' imprisonment, a fine of up to $1 million, and a mandatory special assessment of $100.

The case against Poulsen stems from his actions as president of Ericson State Bank, where he was responsible for overseeing all of the bank's affairs and managing day-to-day operations. Poulsen was also a member of the bank's Board of Directors. However, Poulsen began interfering with insider-related loans and accounts for the purpose of hiding their unsoundness from the Board of Directors.

Poulsen's actions included advancing bank funds on insider-related loans more than the approved loan amounts, manipulating data contained in the bank's computer system, and advancing loans over the approved note amounts. In one instance, Poulsen manipulated the maturity date and entered a new due date for one of the insider-related loans without proper authorization. Due to this manipulation, the loan was not presented as past-due to the Board of Directors despite the loan being mature for 181 days and drawn to a balance of approximately $1.6 million over the approved loan amount.

The bank ultimately failed and was placed into a receivership with the FDIC. At the time of Ericson State Bank's failure, a loss of more than $800,000 was attributable to the insider-related loans which were subject to the scheme.

Poulsen's sentencing hearing is scheduled for August 1st, 2024, at 11:00 AM before United States District Judge Susan M. Bazis. The case was investigated by the Federal Housing Finance Agency – Office of Inspector General, Federal Deposit Insurance Corporation – Office of Inspector General, Federal Reserve Board – Office of Inspector General, and the Federal Bureau of Investigations.

Ericson State Bank was a small rural bank founded in 1959 and had its sole location in Ericson, Nebraska. It was an insured member of the FDIC since June of 1960, until its closing in February of 2020.

Poulsen was the President of Ericson State Bank from June of 2010 until September of 2019. He also sat on the Board of Directors. As President, Poulsen had lending authority but was required to seek approval from the bank's loan committee for any loans exceeding $250,000.

Source: https://www.justice.gov/usao-ne/pr/former-ericson-state-bank-president-pleads-guilty-bank-fraud