Former senior executives of the Federal Home Loan Bank of Dallas have been indicted for using funds from the organization to pay for personal expenses.
An announcement Thursday from the Department of Justice
indicated that Terence C. Smith, Michael J. Sims and Nancy B. Parker have all been indicted.
Smith, 51, was the president and chief executive officer of FHLB
Dallas from 2000 through September 2013, while Sims, 51, was the chief financial officer from 2005 through May 2014.
Parker, 64, was the chief information officer of the government-sponsored enterprise from 1999 to November 2013, and Sims.
According to the announcement, the trio fraudulently sought $780,000 in reimbursements for travel that was identified as business-related.
But the travel was allegedly personal.
“The defendants incurred these expenses in connection with first class airfare, limousine services, concerts, vineyard tours, luxury hotel rooms, lavish meals, and expensive liquor and wine during more than 30 trips they took to Las Vegas, Nevada; Amelia Island, Florida; Coronado, California; San Diego, California; and others locations,” the statement said.
In addition, the trio sought more than $450,000 in reimbursements for unused
vacation time.
Furthermore, Parker was charged with conspiring to embezzle money to pay $17,000 for Christmas gifts — including a wine sommelier, computer video equipment and photography equipment — for Smith.
The funds were paid to a former contractor that subsequently became an employee of the bank.
The alleged fraud was uncovered by an investigation by the
Federal Housing Finance Agency Office of Inspector General.
