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Former Crown Bank CEO sentenced in fraud case

Peter Dahl was sentenced to a year and one day in prison and will be required to pay more than $400,000 in restitution.

The former CEO of Minneapolis-based Crown Bank has been sentenced to a year and one day in prison after defrauding the bank and its investors.

Peter Dahl was sentenced in U.S. District Court in St. Paul on Monday. Dahl was convicted of one count of wire fraud and one count of false income tax return.

According to court documents, Dahl used Crown funds to cover personal debts and expenditures without permission from the board or shareholders and without knowledge by federal regulatory agencies from 2015 to 2017. Dahl also falsified Crown records to account for these transactions.

Dahl would also defraud potential investors through Crown Bankshares, the bank’s holding company, by misrepresenting facts.

In 2017, Dahl told prospective investors that a merger with another bank was “imminent and that investors would receive share premiums. No merger was actually likely. As a result of these misrepresentations, investors bought hundreds of thousands of dollars worth of bank stocks.

Dahl also arranged loans from individuals he claimed were through third parties, but the funds would actually go toward him. He forged at least two signatures of bank customers in order to do so and failed to disclose these loans on his federal income tax return. This resulted in a loss of $125,000 for the IRS.

Dahl will be required to pay restitution of at least $468,799 as part of the case. The case was investigated by the FBI, IRS – Criminal Investigation, the Office of Inspector General for the Federal Reserve Board and the Office of Inspector General for the Federal Deposit Insurance Corporation.

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