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Pierce Bank Collapsed: Three Co-Schemers Sentenced
TACOMA, WA – The rot that finally killed Pierce Commercial Bank has begun to see daylight. Three women complicit in a massive mortgage fraud scheme orchestrated by Shawn Portmann were sentenced yesterday in U.S. District Court in Tacoma, marking a partial reckoning for a financial collapse that cost investors and the FHA over $10 million. Portmann himself awaits sentencing later this month.
JEANETTE R. SALSI, 55, of Bonney Lake, Washington, received seven months in prison, followed by four months of home confinement and three years of supervised release for conspiracy. Salsi, a loan underwriter, knowingly signed off on fraudulent loan applications dating back to 2004, when she followed Portmann from a previous employer to PC Bank Home Loans. Court records show Portmann boosted her salary by 60 percent, effectively buying her silence and approval. She rubber-stamped applications riddled with false employment, debt, and residency information, enabling the sale of these toxic loans to unsuspecting financial institutions and the FHA.
ALICE LORRAINE BARNEY, 54, of Graham, Washington, Portmann’s long-time personal assistant, received a lighter sentence: two months in prison, four months of electronic home confinement, 100 hours of community service, and three years of supervised release. Barney actively created and inserted falsified documents into at least 60 loan files, directly contributing to the scheme. Like Salsi, she followed Portmann to three subsequent mortgage companies after his firing from PC Bank Home Loans, demonstrating a pattern of loyalty over legality.
The highest-ranking insider, SONJA LIGHTFOOT, 53, of Tacoma, Washington, Pierce Commercial Bank’s Vice President and Residential Lending Manager, was sentenced to one month in prison, four months of home confinement, 60 hours of community service, and three years of supervised release. While joining the bank before Portmann’s scheme began in 2002, Lightfoot knowingly sold loans containing false borrower statements between 2004 and 2009. When the fraud unraveled, these loans reverted back to Pierce Commercial Bank, creating a cascading financial crisis that ultimately forced the bank’s closure.
“Mortgage fraud can turn the American Dream of homeownership into a nightmare for our communities,” stated Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest. “Law enforcement will not sit idly by when greed causes professionals to abandon their integrity and become fraudsters.” From 2004 to 2008, Portmann allegedly oversaw nearly $1 billion in loans, personally earning over $1.7 million annually. A sample review of loans revealed over 300 contained false information, with over half defaulting and contributing to the $10 million loss.
Shawn Portmann’s sentencing is scheduled for January 28, 2013, where U.S. District Judge Benjamin H. Settle will determine restitution, to be shared by all defendants. The investigation was a joint effort by the FBI, HUD Office of Inspector General, IRS Criminal Investigation, and the United States Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney.
Key Facts
- State: Washington
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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