The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and U.S. Attorney for the Middle District of Florida Robert E. O’Neill announced that U.S. District Judge Charlene E. Honeywell sentenced Thomas Hebble, former executive vice president of Orion Bank, to 2 1/2 years in federal prison; Angel Guerzon, former senior vice president of Orion Bank, to 2 years in federal prison; and Francesco Mileto, a former Orion Bank borrower, to 5 1/2 years in federal prison for their participation in a conspiracy to mislead state and federal regulators that Orion Bank was in a better capital position than it was in truth and fact.

As part of their sentence, the court also entered a money judgment in the amount of $2 million, part of the proceeds of Mileto’s charged criminal conduct.

“These three co-conspirators are added to the growing list of criminals who will serve jail time for fraud that includes an attempt to use TARP rescue funds,” said Christy Romero, Acting Special Inspector General for the Troubled Asset Relief Program. “Hebble and Guerzon falsified the bank’s books to hide that Mileto’s investment in the bank was nothing but an illusion. They lied to regulators that the bank’s capital had improved, attempted to get $64 million in TARP funds to fill the hole that turned out to be fraud, and drove the bank into the ground. Fraudsters who tried to profit from TARP’s bailout during the financial crisis will meet swift justice by SIGTARP and its law enforcement partners.”

In October 2008, Orion Bancorp unsuccessfully sought $64 million in Federal government assistance through TARP.

To read the full SIGTARP news release of the case click here.