LOS ANGELES — Craig E. Caldwell, former chairman and majority shareholder of the now-defunct Western National Bank in Santa Ana, was indicted by a federal grand jury Wednesday. He is accused of profiting from fraudulent loans that cost the bank about $600,000.
He faces multiple felony counts of making false entries in bank records, of making false statements on bank loan applications and of misapplying bank funds.
The indictment alleges that Caldwell personally received at least $225,000 of the loan proceeds.
Western National, which was founded in 1980, was declared insolvent and seized by regulators in August, 1982. Until then, however, it had been Orange County's fastest-growing bank.
Caldwell "used other people as straw borrowers and reaped the benefits" of certain loans that he arranged, said Assistant U.S. Atty. Patricia L. Collins, the government prosecutor assigned to the case.