Skip to main content

Former Minnesota bank CEO sentenced to 18 months in prison for falsifying records

Robert Hager was the CEO of Border State Bank in Northern Minnesota.

A former Minnesota bank CEO was sentenced to 18 months in prison Tuesday for falsifying records and misappropriating more than $1.6 million.

Robert Hager of Greenbush pleaded guilty in May to one count of making false entries in bank records.

Hager was CEO of Border State Bank, which has locations throughout Northern Minnesota. Hager also served as director of the bank’s holding company, Border Bancshares. Hager held positions at banks Border Bancshares acquired, including the former First State Bank of Clearbrook and the former First Advantage Bank.

Hager loaned money to a bank customer to invest in a diamond and gold venture in Liberia, Ghana and Kenya in late 2015 and early 2016. Hager depleted his own funds in the investments and maxed out the amount he could borrow from the bank. He then asked bank customers, shareholders and directors of the bank to lend him money.

According to Hager’s guilty plea, Hager had bank customers take out loans in their own name or draw from existing loans and then transfer the money to him between 2016 and 2017.

In May 2016, Hager used three unauthorized Standby Letters of Credit worth $1.6 million to have diamonds and gold delivered from Africa. Hager used First Advantage Bank letterhead for the Standby Letters of Credit and signed the letters as CEO.

Standby Letters of Credit are considered obligations of payment by the bank and need to be tracked by regulators, but Hager failed to report them to bank personnel.

Hager was sentenced to 18 months in prison and two years of supervised release. 

The latest forecast from Novak Weather

Next Up

Police tape

Man fatally shot at a home in Brooklyn Park

The shooting happened at a home in the 7800 block of Tessman Drive.

Screen Shot 2022-09-28 at 3.36.57 PM

Scott County attorney candidates differ on marijuana possession

Scott County is one of a few Minnesota counties where the incumbent prosecutor is facing a challenger in November.

Screen Shot 2022-09-23 at 10.21.38 PM

Teen charged in shooting outside of Richfield football game

Due to the age of the suspect, the case won't be made public.

Screen Shot 2020-02-06 at 9.05.08 AM

Twin Cities Summer Jam no more: popular festival brought to an end

The festival noted how the land they host camping on has recently been sold.

image

Expect major traffic delays on Renaissance Festival's final weekend

Scott County officials said road closures will be to blame.

Voting survey vote election

Ramsey County sends out ballots with deceased candidate on it

The county said it's addressing the issue with the Minnesota Supreme Court.

Screen Shot 2022-09-28 at 12.30.28 PM

New haunted house experience coming to Inver Grove Heights

The exhibit will feature family-friendly and 18+ events.

Related

crown bank

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.

u.s. attorney's office

West Virginia man sentenced to 70 months after robbing Moorhead bank

Robert Vaughn Evans, 53, was sentenced to 70 months in prison followed by three years of supervised release.

Pixabay - gavel court

Eden Prairie man sentenced to 10 years in prison for illegal firearm possession

Damien Lashaun Nelson had others purchase firearms for him illegally between June and October of last year.

prison, Rush City cell block

Former Army Green Beret and U of M student sentenced for Russian espionage

Peter Rafael Dzibinski Debbins, 46, was sentenced to 188 months in prison.

u.s. attorney's office

Four sentenced for home invasion on northern Minnesota reservation

The incident took place in October 2019 on the Red Lake Indian Reservation.

Wells Fargo

Wayzata man gets prison for arson of Wells Fargo during riots

Marc Bell Gonzales was sentenced in U.S. District Court Wednesday.

u.s. attorney's office

Minnesotan sentenced after assaulting man with baseball bat

Marshall Wayne Boshey was sentenced to 30 months in prison followed by two years of supervised release.