St. Louis, MO: Mark Turkcan was sentenced to one year and one day in prison for the misapplication of $35 million connected with his position at First Bank Mortgage, Acting United States Michael W. Reap announced today. Additionally, he was ordered to pay restitution of $24,628,221.

According to court documents, the misapplication began as early as 1987 when Turkcan was employed by Sheahan Financial, which, along with Clayton Savings and Loan, was purchased by First Bank. The substantial misapplication that Turkcan incurred at Sheahan were from on hedge positions taken on behalf of Sheahan, and were concealed at Sheahan.

In 1990, First Bank purchased Clayton Savings and Loan and Sheahan Financial without knowing about the misapplication concealed on the books of Sheahan Financial, causing First Bank to overpay in the purchase. After the purchase of Sheahan in 1990, Turkcan became President of First Bank Mortgage. He continued to buy and sell mortgage backed securities as part of his job. However, misapplication from the unauthorized and unapproved borrowings continued ultimately rising to a level of approximately $35 million. They were covered up and concealed from First Bank by destroying or changing records and posting profits on the books and records of the Bank.

To cover the misapplications, Turkcan borrowed against the mortgage backed securities of First Bank Mortgage. These loans were also concealed from First Bank. To conceal the true nature of these transactions, Turkcan created false and fictitious trade tickets and Bear Stearns confirmations.

Ultimately these misapplications rose to a level of approximately $35 million, which First Bank had to pay Bear Stearns.

Turkcan, 54, Kirkwood, MO, pleaded guilty last January to one felony count of misapplication of bank money by a bank officer. He appeared today for sentencing before United States District Judge Donald J. Stohr.

Reap commended the First Bank's officers and employees for bringing this information to the U.S. Attorney's Office, and the Federal Bureau of Investigation for their expeditious investigation of this case.

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