Ex-Chief of Failed Western National Bank Is Convicted

A federal court jury convicted the former president of one of Orange County’s once fast-growing banks on two counts of misapplication of bank funds and one count of making false entries in bank records.

John G. Willett, 38, former president of the now-defunct Western National Bank in Santa Ana, was acquitted of four related counts and the jury was unable to reach a decision on another count when it returned a verdict late Wednesday in Los Angeles.

The charges stem from a federal grand jury indictment in June that accused Willett of misusing his authority while serving as president of Western National.

The bank, which opened in 1980, grew from an initial capitalization of $2.5 million to $22 million in assets during its first six months of operation alone. By August, 1982, federal regulators found that the bank was suffering from “significant loan losses,” after which it was seized and declared insolvent.

Willett, who lives in Fullerton, was convicted on charges relating to a $65,000 loan made to his mother and a $45,000 loan he made to a woman whose Rancho Mirage condominium he was buying. The misapplication charge related to a $21,000 cashier’s check, which he issued without tendering full payment, according to court records.

Patrick G. Rogan, Willett’s attorney, said that all of the loans involved in the convictions were paid back in full and did not cause any losses to the bank.

He said Willett used the cashier’s check but repaid the money a few days later.

“It’s unrealistic to think of anything other than a probationary sentence,” Rogan said. He said Willett is self-employed and working in the real estate business.

U.S. District Judge Ferdinand F. Fernandez set a Nov. 24 sentencing date for Willett, who faces a maximum sentence of five years in prison and a $5,000 fine for each charge.