Pennsylvania Loan Officer Pleads Guilty in Fraudulent Call Report Probe
Subscribe

Pennsylvania Loan Officer Pleads Guilty in Fraudulent Call Report Probe

June 20, 2011

Donna Shebetich of Allegheny County, Pa., has pleaded guilty in federal court to a charge of making a false entry in bank records, United States Attorney David J. Hickton announced. Shebetich pleaded guilty to one count before United States District Judge Arthur J. Schwab. In connection with the guilty plea, the court was advised that Shebetich, while employed as a vice president, director, and loan officer for Metropolitan Savings Bank (MSB) in Pittsburgh, a financial institution insured by the Federal Deposit Insurance Corporation (FDIC), electronically filed with the FDIC, as required, a quarterly report, commonly referred to as a "Call Report," for the quarter ended Sept. 30, 2006, which falsely and significantly under‑reported mortgage loans which were outstanding and which were delinquent for 30 or more days for the purpose of deceiving the FDIC and its examiners.
The Call Report submitted by Shebetich indicated that MSB had $0.00 in mortgage loans on which payments were overdue, when in truth, the books and records of the bank indicated that in excess of $7 million in mortgage loans had payments outstanding for 30 days or more. The FDIC closed MSB on Feb. 2, 2007, after the FDIC conducted an on‑site audit of the bank.

Compliance, Originations