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FORT MYERS — Jerry Williams, the once celebrated local banker, was sentenced to a six-year federal prison term for his role in a widespread bank fraud case.
Williams, former president, CEO and chairman of Naples-based Orion Bank, pleaded guilty in February to conspiracy to commit bank fraud and making false statements to banking regulators. “Williams orchestrated a complex conspiracy to fraudulently raise capital and falsify bank records in order to mislead state and federal regulators as to the bank's true financial condition,” according to a statement from the U.S. Attorney's office for the Middle District of Florida, which prosecuted Williams.
Williams, in his guilty plea agreement, admitted he conspired with other Orion executives to lend $22 million to depositors whom he knew would use the money to buy shares of Orion's stock. Regulations prohibit banks from financing the purchase of its own stock. Williams also engaged in lending practices that made non-performing loans appear to be performing loans, federal prosecutors contended.
U.S. District Judge Charlene Edwards Honeywell handed down the sentence to Williams, 52. Three other defendants in the case have already been sentenced for their roles, though prosecutors and investigators repeatedly pointed out that Williams was the leader of the fraud.
“Mr. Williams' fraud scheme and deception of bank examiners is the type of criminal conduct that harms the safety and soundness of our banking institutions,” says Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System, in a statement. “(The) sentencing is one more step in a joint effort with our federal partners to hold accountable those who undermine the integrity of those institutions.”
Regulators seized Orion Bank in late 2009. Lafayette, La.-based IberiaBank assumed control of its assets and deposits.
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