Former Senior Vice President Shawn Portmann was handed a 10-year prison sentence today by U.S. District Judge Benjamin H. Settle in Tacoma, Washington, for orchestrating a mortgage fraud scheme that contributed to the collapse of Pierce Commercial Bank.
Portmann, who pleaded guilty on September 18, 2012, to conspiracy and making false statements, has been sentenced to serve his term followed by five years of supervised release. The U.S. Attorney Jenny A. Durkan described Portmann’s actions as a ‘fraud on multiple layers’ that evaded detection due to the involvement of individuals at every level.
Durkan emphasized the human cost of Portmann’s greed, stating, ‘Shawn Portmann’s greed destroyed dreams, ruined careers and defrauded millions from taxpayers.’ The scheme is linked to over 300 fraudulent loans, with more than half in default, resulting in an estimated $10 million loss.
Portmann was instrumental in a conspiracy that involved falsifying borrower qualifications and intentions to reside in the financed homes. Pierce Commercial Bank, which received $6.8 million from the Troubled Asset Relief Program (TARP) in 2009, closed due to regulatory action in November 2010.
RELATED: Pierce Bank Collapsed: Three Co-Schemers Sentenced
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Key Facts
- State: Washington
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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