Dan Heine, Diana Yates ordered to report to prison on Oct. 9
Former Bank of Oswego CEO Dan Heine and former CFO Diana Yates were ordered Tuesday to report to prison on Oct. 9 after a federal judge rejected their requests to remain free pending appeal of convictions on bank fraud and other charges.
The pair were each found guilty in November 2017 of falsifying bank records and conspiracy to commit bank fraud following a six-week trial that stemmed from an investigation into a series of bad loans that were hidden from the bank's board of directors and the FDIC.
After a series of delays, Heine was sentenced to 24 months in prison and Yates received 18 months at a sentencing hearing on June 14. Both defendants immediately appealed their convictions and filed motions seeking to delay the start of their prison terms until after the appeal is resolved.
But on Tuesday, U.S. District Court Judge Michael Simon denied both defendants' requests.
In his opinion and order, Simon laid out four criteria that defendants must meet in order to be granted bail pending appeal: the defendant is not a flight risk, the appeal is not for the purpose of delay, the appeal raises a substantial question of law or fact, and the resolution of that question is likely to result in a reversal of the conviction.
Simon found that neither Heine nor Yates presented a flight risk and that neither appeal was intended purely as a delay tactic. But he ruled that Heine's appeal raised only one substantial question of law and that it would not have any impact on the defendants' convictions or sentences.
Heine and Yates' sentences both include three years of probation following the completion of their prison terms, including restrictions on future financial dealings; both will be required to seek approval from probation officers before taking out a loan or applying for new lines of credit.