Former Lincoln bank executive Gil Lundstrom deserves a sentence below the federal guidelines, his lawyers argued in court filings Wednesday, reminding the judge that probation and home confinement are options.
Lundstrom, 74, faces 360 years in prison if sentenced to the maximum for the offenses of which he was found guilty last year after a federal criminal trial in Lincoln. He remains free pending sentencing later this month.
But he is ill, aged and has no criminal record, his lawyers argue in court filings that urge the judge to depart from the federal sentencing guidelines. "Gilbert G. Lundstrom is a 74-year-old man who has no criminal history and has led an exemplary life up and until the offense conduct in this case," the filing says. "The court may impose a sentence of probation."
The filing also lists as options home confinement or house arrest; a sentence of community service; restitution; and a period of supervised release.
The circumstances of the offense, the filing says, warrant a lesser sentence. His lawyers argue that Lundstrom was trying to save TierOne Bank amid the worst financial crisis since the Great Depression.
"While Mr. Lundstrom does not intend to minimize any mistakes he made, this was not a 'typical' securities fraud action, where a defendant maliciously schemed to deceive others and steal money for personal gain," the filing says. In addition, the filing says, he suffers from arthritis, neuropathy, degenerative joint condition, vision and hearing loss and had total knee replacement in 2014.
Lundstrom was found guilty last year on 12 of 13 counts related to hiding loan losses at Lincoln-based TierOne Bank, of which he served as chief executive from the late 1990s through 2010.
The bank went insolvent after investing in the housing boom out of state, and Lundstrom was indicted by federal prosecutors for concealing from investors and regulators uncollectible loans made to real-estate developers.
The Wednesday court filing doesn't recommend a specific sentence, but it does cite numerous cases from the past decade in which executives convicted of financial fraud received lighter sentences, including several in which life terms were in the guidelines.
In some of the cases cited by Lundstrom's lawyers, the guilty executives in the end received sentences ranging from two years to seven years.