Dallas Bankers Accused of Bilking Lender Out of $1.2 Million to Pay for Vineyard Tours, Lavish Trips

Three former officials with the Federal Home Loan Bank of Dallas have been charged in federal court with faking business travel to defraud the bank out of $1.2 million that paid for lavish trips that had nothing to do with work.One of the officials is also accused of getting a contractor to file inflated invoices so the official could buy Christmas gifts, such as a "wine sommelier computer," for another banker.The people charged with making false statements are Terence C. Smith, former president and chief executive officer; Nancy B. Parker, former chief information officer; and Michael J. Sims, former chief financial officer.The Dallas bank is part of a system formed by the federal government during the Great Depression to encourage mortgage lending, but it doesn't use taxpayer money. The Federal Home Loan Banks are owned by local lenders and provide much of the cash those lenders need to issue mortgages and other loans.  Continue reading...