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Former TierOne chairman pleads not guilty to fraud

LINCOLN, Neb. (AP) -- The former chairman and CEO of TierOne Bank has pleaded not guilty to conspiracy and fraud allegations connected to the Lincoln-based bank's collapse.

LINCOLN, Neb. (AP) - The former chairman and CEO of TierOne Bank has pleaded not guilty to conspiracy and fraud allegations connected to the Lincoln-based bank's collapse.

The Lincoln Journal Star says 73-year-old Gilbert Lundstrom entered the pleas to 15 counts on Wednesday in U.S. District Court in Lincoln. Authorities say Lundstrom conspired with other bank officers to hide the bank's troubled finances from regulators and shareholders.

Former TierOne President James Laphen on Monday pleaded guilty to mail and wire fraud. In September TierOne's former chief credit officer, Don Langford, pleaded guilty to similar charges.

Regulators took over TierOne in 2010, saying the bank had too many bad loans on its books and lacked sufficient capital to cushion losses. The bank's assets were sold to South Dakota-based Great Western Bank.

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