SIMI VALLEY : Ex-Bank Manager Admits to Fraud
A former branch manager of Simi Valley Bank pleaded guilty Friday to defrauding the institution of more than $40,000 through falsified loans, officials said.
Frank John Szabo, 33, pleaded guilty to two counts of felony bank fraud in U.S. District Court in Los Angeles.
Szabo, free on his own recognizance, is scheduled to be sentenced May 24 by U.S. District Judge William D. Keller. He faces a maximum penalty of $500,000 and 10 years in prison.
Now living in Irvine, Szabo could not be reached for comment Friday.
During 1986, while employed as an assistant vice president and branch manager of Simi Valley Bank, Szabo engaged in a phony loan scheme, authorities said.
Szabo filled out fake loan applications, which he would approve himself, and used the funds for his personal benefit, said Gary Auer of the Ventura office of the FBI. The bureau began investigating Szabo after being contacted by the bank.
Szabo submitted one loan application, which he supported with fraudulent tax returns, on behalf of his mother and father-in-law, Auer said.
Szabo used some of the money to buy a Mercedes-Benz, Auer said.
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