United States v. Gilbert Lundstrom

Gilbert G. Lundstrom was the CEO of TierOne Bank from 1999 to January 2010. According to allegations in the indictment, he and others concealed the true value of TierOne’s loan and real estate portfolio. They also provided falsely inflated figures in their reporting to the U.S. Securities and Exchange Commission (SEC) and the Office of Thrift Supervision (OTS). Specifically, Lundstrom and others allegedly used outdated property appraisals and rejected new appraisals that would have required TierOne to mark down the value of its real estate holdings. In addition, Lundstrom and others allegedly delayed seeking new appraisals to conceal the depreciating value of its loan collateral, and restructured loan terms to disguise the borrowers’ inability to make timely interest and principal payments. As a result, Lundstrom and others were allegedly able to hide millions of dollars in losses from regulators and investors.