Joseph Tobin, Bank Fraud, Kentucky 2024

Bank Officer Sentenced in Multi-Million Dollar Bank Fraud Scheme

A former Vice President of PBI Bank in Lexington, Kentucky, has been sentenced to two years in federal prison for helping three other people defraud the bank out of over $2.1 million.

Joseph Tobin, 45, pleaded guilty to six counts of aiding and abetting bank fraud and one count of bank fraud. He was sentenced by U.S. District Judge Danny C. Reeves on [date].

Tobin's co-defendants, Daniel Sexton, Jonathan Williams, and Sheila Flynn, are currently serving prison sentences for their roles in the scheme. Sexton received 109 months, Williams received 60 months, and Flynn received 24 months.

According to their guilty pleas, Sexton and Williams owned and operated several mobile home businesses in Georgetown, Kentucky, while Flynn worked as an office manager. Tobin, who was a Vice President at PBI Bank, which was receiving funds through the Troubled Assets Relief Program at the time of the offense, knew that the loan applications were fraudulent but approved them anyway.

Tobin also set up a straw loan for another borrower and approved loans for other people who were recruited by Sexton and Williams. In total, the defendants obtained over $2.1 million from the bank through their scheme.

The U.S. Attorney's Office, the Federal Bureau of Investigation, and the Office of the Special Inspector General for the Troubled Assets Relief Program jointly announced the sentence. Assistant U.S. Attorney Dmitriy Slavin represented the United States.

Tobin was ordered to pay restitution to four victimized banks, including PBI Bank, which he was a part of. He is responsible for paying $185,001 in restitution. The other defendants were ordered to pay much larger amounts, with Sexton and Williams each ordered to pay over $2.6 million.

Source: https://www.justice.gov/usao-edky/pr/bank-officer-becomes-fourth-defendant-sentenced-multi-million-dollar-bank-fraud