LITTLE ROCK — For defrauding Iberia Bank of nearly $3.6 million to pay off a civil judgment in Texas, a Rogers woman was sentenced Tuesday to nearly 31/2 years in prison.
Dana Washburn, 42, pleaded guilty on May 12, 2009, to a single count of bank fraud, admitting that in late 2007 and throughout most of 2008, she defrauded what then was known as Pulaski Bank & Trust by taking out five loans that she falsely portrayed as backed by collateral.
Washburn faced a potential penalty of 51 to 63 months in prison under federal sentencing guidelines, but Chief U.S. District Judge Leon Holmes took into consideration some medical problems Washburn has experienced in sentencing her below the range, to 41 months.
Washburn’s attorney, W.H. Taylor of Fayetteville, said Washburn’s fraud was motivated by a desire to pay a judgment against her and her husband that resulted from a business dispute in Texas.
A “criminal information” to which Washburn pleaded guilty, agreeing to forgo a grand jury investigation, said her fraud scheme was carried out between Nov. 2,2007, and Dec. 1, 2008, with a total loss to the bank of $3,577,223.02.
Holmes also ordered her to make full restitution.
Last year, U.S. Attorney Jane Duke said Washburn received five loans totaling $3,665,000 from the bank’s Jonesboro branch, using an investment account at Stephens Inc. as collateral for four of the loans. Duke said the fifth loan was issued based on statements madeabout the balance of the Stephens account.
When the loans were issued, Washburn falsely stated that the Stephens account contained $3.8 million, Duke said. She noted that to get the money, Washburn altered statements from the Stephens account and provided Pulaski Bank with false documentation and a forged control agreement.
After receiving the loans, Washburn transferred money in the Stephens account to a bank in Northwest Arkansas without notifying Pulaski Bank that she was moving thecollateral, Duke said.
When Pulaski Bank learned that the funds were no longer in the Stephens account and asked Washburn about it, she claimed the funds had been transferred to another investment account, this one at Raymond James Financial, Duke said.
Washburn then had someone pretend to be a broker at Raymond James and “verify” that the funds were in an account there, Duke said.
Pulaski Bank discovered in December 2008 that it had been duped, Duke said.
Taylor said Tuesday thatWashburn’s sentencing has been delayed several times because of her precarious health, which has required four surgeries involving her bladder since she pleaded guilty.
Assistant U.S. attorney Karen Whatley told the judge that Washburn’s incontinence didn’t seem to affect her ability to travel to Mexico on three occasions.
Holmes allowed Washburn, who grew up in Elkins, to postpone reporting to federal prison until Feb. 28, to give her time to be treated by a medical specialist in Dallas.
Northwest Arkansas, Pages 9 on 10/27/2010