Danny Seibel, Ex-CEO of The First National Bank of Lindsay, Faces Fraud Charges
The former Chief Executive Officer of the now-defunct First National Bank of Lindsay in Oklahoma, Danny Seibel, has been indicted by a federal grand jury on bank fraud charges. If found guilty, Seibel could face up to 30 years imprisonment and a fine of up to $1 million. The collapse of the bank, which had been in operation for 122 years, resulted in a cost of $42.3 million to the FDIC’s Deposit Insurance Fund, according to a report made public by the Office of the Comptroller of the Currency (OCC) in March 2025. (source)
Indictment Claims and Allegations
The 18-count indictment alleges that Seibel, who led the bank from 2007 until its closure in September 2024, made numerous loans to friends and neighbors, including three local small business owners, which were never repaid. Seibel also allegedly manipulated the bank’s reporting systems to conceal the actual condition of loans and the status of the bank’s overdrafts.
Seibel is accused of reporting overdrafts of $170,000 in May 2024, when they actually totaled to $1.36 million, according to the indictment. Further allegations include advising clients to make cash deposits in amounts below $10,000 to avoid reporting requirements and executing transactions that should have been reported as suspicious under the bank’s own anti-fraud policies.
Seibel’s Defense and The Bank’s Collapse
In an affidavit filed in November 2024 as part of a civil lawsuit, Seibel denied using bank funds for personal use, claiming he sought to help the Lindsay community and “certain customers”. He stated, “I truly believed I could eventually correct these actions with minimal loss to the bank.”
However, an audit report from the OCC highlighted a “critical breakdown in the Bank’s internal controls” as a significant factor leading to the bank’s collapse. The OCC is currently preparing a more detailed review of the failure, which is expected to be completed later this month.
Aftermath and Impact of The Bank’s Failure
First National’s collapse was one of two bank failures in 2024. Despite concerns that this could be a sign of an impending economic downturn leading to further bank closures, only one more institution, the Pulaski Savings Bank in Chicago, has failed since then.
First National’s deposits were assumed by the First Bank & Trust Co. in Duncan, Oklahoma. The collapse of the First National Bank of Lindsay serves as a cautionary tale for other community banks, underscoring the importance of maintaining robust internal controls and adhering to anti-fraud policies.
The full details of the indictment can be found Here.
