Fmr. Waupaca bank CEO convicted of stealing $1.6 million from bank for personal use

Published: Jul. 10, 2020 at 11:19 AM CDT
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WAUPACA, Wis. (WSAW) - The former president and CEO of a bank in Waupaca was sentenced in federal court for using bank funds for things like luxury vacations and other personal expenses.

The U.S. Attorney’s Office for the eastern district of Wisconsin states Archie Overby, 71, plead guilty and was convicted of misapplication of funds by a bank officer. He now lives in Parker, Tex., but used to be the president, CEO, and chairman of the board for First National Bank in Waupaca.

Overby admitted to the court that between 2010 through 2013, “he caused the bank to pay for $1.6 million in travel, entertainment, and other personal expenses for himself, family members, friends, and associates, all of which had no legitimate banking purpose,” the press release stated. “The expenses include airfare, lodging, and a climbing expedition to Mt. Kilimanjaro, Tanzania, as well as stays at a spa in Arizona and in villas in St. Maarten.”

The Office of Comptroller of Currency, the bank’s federal regulator, also filed a civil case. Overby settled the case in 2017, agreeing to never participate in the financial institution industry for the rest of his life, and paying $1.6 million in restitution, plus $100,000 in a civil penalty. Following that settlement, Overby released a statement that “he had admitted no wrongdoing and ‘never would,‘” describing the regulator as “overzealous.” He also claimed to be the victim and that the regulator was just trying to “tarnish his reputation.”

In the criminal case, however, he admitted both the criminal conduct “and that the OCC acted properly and within the bounds of its authority.”

Overby was not sentenced to a term in prison. The judge instead, given his age, documented significant health problems, and the potential impact of COVID-19, ordered him to pay the $1.6 million in restitution and forfeit $146,023.35 to the United States.

“Judge (William) Griesbach noted that Overby’s criminal conduct, which had gone on for years, was serious and hard to understand, particularly in light of the fact that Overby had been ‘so well compensated,’” the release said. “Judge Griesbach concluded that it was a betrayal of trust that could only be attributed to ‘greed and callous disregard for others.' Judge Griesbach explained that ‘in ordinary circumstances, this case would call for a guideline prison sentence.‘”

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