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Oakland banker gets 2 years for misusing funds

By news admin

MEMPHIS, Tenn. (AP) - Federal prosecutors say an Oakland banker has been sentenced to two years in prison and ordered to pay back $2.4 million after pleading guilty to misusing bank funds.

The U.S. attorney's office says Stephen Henry was sentenced Friday in Memphis.

Henry was president of Oakland Deposit Bank when he helped real estate investor Stephen Sims use funds from construction loans to pay on other unsecured loans that were delinquent.

Henry also manipulated records to allow bank funds to be used to pay on delinquent loans without being credited to a customer's account.

Sims defaulted on more than $2.4 million in loans. The bank was taken over by federal officials before it was sold.

Sims pleaded guilty to bank fraud and has been sentenced to more than seven years in prison.
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