Court documents unravel Bank of Oswego scandal


The court records reveal top executives’ roles in the bank’s collapse.

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The Oregonian/OregonLive last spring detailed questionable business practices that nearly broke the bank. Two months later, Heine and Yates were arrested and charged with conspiracy to commit bank fraud and 26 counts of making false bank entries. A third executive, Geoff Walsh, pleaded guilty to conspiring to falsify bank reports.

The trove of new documents sheds new light on those criminal cases, revealing a bank crippled by long-simmering animosity, weak credit standards and lax board oversight. The documents portray a self-styled hometown bank operating amid a loose atmosphere of party jets, sexual innuendo and secret loan payments for high-profile clients.

The bulk of the new court records are notes kept by FBI agents during a years-long investigation into the bank. The filings help explain how two seasoned executives, both of whom cast themselves as whistleblowers, instead became the targets of a criminal investigation.

(READ MORE: Oregon Live)


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