Two former officials were sentenced to five years each for falsifying travel expenses and lying to authorities.
Though synthetic identity fraud is down across the industry, there's been an uptake in such attacks targeting credit unions.
An initial review determined that lax oversight at Enloe State Bank allowed for the origination of more than 100 allegedly fraudulent or fictitious loans.
The Boston company said the loan participation went into default due to potentially fraudulent activity.
Private Bancorp of America is the latest bank to report a borrower issue in connection with a high-profile fraud case tied to liquor licenses.
The loan participation has been flagged for potentially fraudulent activity.
The company says its exposure involves a participation loan to a business customer for which it was the originator.
