FEDERAL INDICTMENT: Former Lindsay Bank President Accused of Massive Fraud Scheme That Collapsed a 100-Year-Old Oklahoma Bank
A year after the sudden failure of First National Bank of Lindsay shook an entire community, federal prosecutors have now revealed what they believe caused the collapse — and the allegations are explosive.
Who is Charged?
Danny Seibel, 54, former President and CEO of First National Bank of Lindsay, has been indicted on 18 federal counts, including:
• Conspiracy to commit bank fraud
• Bank fraud
• Making false bank entries
• Obstructing a federal bank examiner
• Failing to maintain anti–money laundering controls
If convicted, Seibel faces up to 30 years in federal prison.
According to the indictment, Seibel ran a years-long scheme in which he:
1. Secretly issued loans to friends and favored customers
Prosecutors say many of these borrowers never repaid a dime — and some didn’t even know loans were being created in their names.
2. Covered up massive overdrafts
When accounts belonging to friends went deeply negative — sometimes by hundreds of thousands of dollars — Seibel allegedly:
• Created new loans to wipe out overdrafts
• Moved money between accounts without permission
• Manipulated loan records to make them appear “healthy”
One overdraft alone exceeded $530,000.
3. Helped borrowers evade reporting laws
The indictment says Seibel coached customers to deposit cash in amounts under $10,000 to avoid federal reporting requirements.
4. Hid the truth from both his board and federal regulators
When federal bank examiners arrived in 2024, prosecutors allege Seibel gave them falsified records — and even texted a coworker:
“I think I’m nailed to the wall… delete these texts.”
In October 2024, federal regulators shut down the 100-year-old community bank.
FDIC receivers found:
• $43 million insured deposits
• $7.1 million uninsured, with only half likely recoverable
The closure devastated long-time customers, local businesses, and the town’s economy.
THE GAMBLING CONNECTION
Court filings also reveal surprising details:
• Seibel allegedly arranged for casino hotel rooms through one borrower
• Another borrower made repeated withdrawals at Riverwind Casino
• Borrowers texted Seibel asking him to “fix” their accounts by adding bank funds
This paints a picture of a small-town bank president allegedly funneling money to friends — some of whom were known gamblers — while falsifying paperwork to hide the losses.
Just weeks before the bank’s collapse, the bank’s vice president, Clint Simonton, died by suicide.
He is not named as a co-conspirator and is not accused of wrongdoing.
WHAT SEIBEL SAYS
In a prior civil case (now dismissed), Seibel admitted he violated his fiduciary duties but claimed:
• He was afraid for his job
• He thought he could “fix” the situation
• He believed he was helping his community
He denied his wife had any involvement in the scheme.
WHAT HAPPENS NEXT?
The FDIC, FBI, IRS, and Federal Housing Finance Agency continue to investigate.
Federal prosecutors Julia E. Barry and Jackson D. Eldridge are handling the case.
If convicted, Seibel faces:
• Up to 30 years in prison
• Up to $1 million in fines
WHY THIS CASE MATTERS IN OKLAHOMA
This was not a big corporate bank.
This was a small-town Oklahoma bank — woven into people’s lives for generations.
When it collapsed:
• Farmers suffered
• Small business accounts froze
• Families lost savings
• The town’s financial stability shattered
And now federal prosecutors say one man’s fraud — hidden behind friendly smiles and hometown trust — is what brought it all down.
