A one-time president of the State Bank of Herscher was ordered to 'pay up' and is now prohibited from conducting any banking business in any financial institution.
Todd Widholm answered to charges brought by the FDIC (Federal Deposit Insurance Corporation). Widholm is a former president of the State Bank of Herscher.
The Herscher Pilot reports Widholm was ordered to pay $50,000 restitution to the U.S. Treasury.
Widholm was sued by the bank for his role in former vice-president David Rabideau's kickback scheme. It was a $75,000 kickback for a loan he approved in 2007. Records also show there were other deceptive loans that continued through 2011.
The lawsuit states Widholm discovered Rabideau accepting the $75,000 kickback in 2007. But Widholm didn't inform the bank's board of directors.
Rabideau later pleaded guilty. He's now serving a two-year federal prison term.