A former chief executive officer of Crown Bank has pleaded guilty to wire fraud and filing a false income tax return after he used bank funds to pay his personal debts.
Peter Dahl served as the CEO of Crown Bank, based in Edina, from 2000-2017, and from 2012-2017 he admits to a scheme to defraud the bank and several people, using the bank's funds to pay his personal debts and expenses and then altering records to hide it, according to a plea filed in U.S. District Court on Tuesday. He had been charged in March.
According to court documents, he repeatedly conducted transactions involving funds and credits of Crown for his own purposes. He used various Crown accounts to cover his personal debts and expenditures and repeatedly kited obligations within accounts of Crown and between accounts at Crown and other banks.
"Dahl used his position at Crown and access to accounts at Crown to avoid paying creditors to whom he owed substantial sums," the plea document states.
He also defrauded prospective investors, misrepresenting facts claiming that an acquisition of Crown was "imminent" when he knew it wasn't, court documents said.
Dahl also filed a false income tax return in 2016 by not disclosing more than $700,000 in additional income he had earned that year.
A sentencing date has not been set.