• Former First National Bank of Lindsay CEO pleads guilty to bank fraud
• Prosecutors say loans to friends and neighbors were concealed and manipulated
• Bank records allegedly falsified to overstate loan performance
• OCC closed the Oklahoma bank in October 2024 after suspected fraud findings
• Seibel faces up to 30 years in prison and $1 million in fines
• Case raises governance and control concerns for community banks

The former chief executive of the failed First National Bank of Lindsay has pleaded guilty to bank fraud, admitting to conduct that prosecutors say concealed mounting losses and contributed to the collapse of the institution.

Danny Seibel, who led the Oklahoma bank from 2007 until his dismissal in September 2024, now faces a potential prison sentence of up to 30 years and fines of as much as $1 million following his guilty plea in federal court.

According to the US Department of Justice, Seibel oversaw the issuance of loans to several borrowers, including personal friends and neighbors, that were never repaid.

Prosecutors alleged that he manipulated and falsified bank records to make the loans appear healthier than they were, including using new loans or bank funds to cover overdrafts and delinquent balances.

In court filings, Seibel acknowledged knowingly participating in a scheme to defraud the bank between March 2020 and September 2024.

“First National Bank of Lindsay was FDIC insured and I acted with intent to defraud it,” Seibel wrote in his guilty plea petition. “My fraudulent actions were capable of influencing the decision of the bank and I placed the bank at risk of civil liability or financial loss.”

The case emerged after the Office of the Comptroller of the Currency closed the bank in October 2024 after uncovering information suggesting fraud and significant depletion of the institution’s capital. The regulator subsequently referred the matter to the Justice Department.

Court documents and a December indictment provide further detail about how the alleged misconduct operated.

Prosecutors said some borrowers were unaware their loans had not been properly recorded or that false entries had been made in bank systems.

Others, however, allegedly requested that Seibel manually add funds to accounts when they needed additional liquidity.

One exchange cited by prosecutors involved Seibel expressing frustration over the growing size of an overdraft exposure.

In a text message included in the indictment, he warned a borrower that he was “totally tapped” and said his job was “not worth it.”

Despite those concerns, prosecutors alleged that weeks later he manually added more than $536,000 to the borrower’s account to offset a negative balance exceeding $533,000, despite no deposit having been made.

The collapse of the bank marked one of two US bank failures during 2024. Deposits from the institution were later assumed by First Bank & Trust Co., based in Duncan, Oklahoma.

The failure also drew attention because of reassurances previously issued by Seibel during the regional banking turmoil of 2023, when the collapses of institutions including Silicon Valley Bank and Signature Bank unsettled markets.

At the time, Seibel sought to reassure customers that First National Bank of Lindsay remained financially sound.

In a message to customers, he said the bank maintained “sound financial practices,” had a “very solid” capital position, and remained highly liquid.

The contrast between those assurances and the later fraud allegations is likely to intensify scrutiny of governance, oversight, and internal controls at smaller community banks, particularly where executive authority is concentrated among long-serving leadership teams.

Seibel began his career at the bank in 1993 at the age of 22, according to the indictment. Court filings indicate he is now employed by an Oklahoma spray foam installation company while awaiting sentencing.