SIMI VALLEY : Ex-Bank Manager Sentenced in Fraud
A former branch manager of Simi Valley Bank was sentenced Friday to six months of community service work and placed on five years of probation for defrauding the bank of more than $40,000, officials said.
Frank John Szabo, 33, also was ordered to pay full restitution to the bank during his probation, said U.S. Atty. Walter F. Brown Jr.
Szabo pleaded guilty to two counts of fraud in federal court in Los Angeles. Szabo, who now lives in Irvine, could not be reached for comment Friday.
Brown said Szabo engaged in a loan scheme while employed as a vice president and branch manager of Simi Valley Bank in 1986. Brown said Szabo would fill out fake loan applications, approve them himself and then use the funds for his personal benefit. Some of the money was used to buy a Mercedes-Benz.
In one instance, Szabo submitted a loan application on behalf of his mother- and father-in-law. The application was supported by fraudulent income tax returns and false personal financial statements, Brown said.
Szabo was fired by the bank after officials became suspicious of his business practices. The bank then contacted the Federal Bureau of Investigation.
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