Former President of First Bank Mortgage Indicted on Multiple Fraud Charges Causing...

Former President of First Bank Mortgage Indicted on Multiple Fraud Charges
Causing a Loss of $35 Million

ST. LOUIS, July 10 /PRNewswire-USNewswire/ -- Mark Turkcan, of Kirkwood, Mo.,
was charged in an 11 count indictment alleging fraudulent activities connected
with his position at First Bank Mortgage, causing a loss of $35 million to a
St. Louis Bank, U.S. Attorney Catherine L. Hanaway of the Eastern District of
Missouri and John Gillies, Special Agent-in-Charge for the FBI in St. Louis
announced today.

According to the indictment, the losses began as early as 1987 when Turkcan,
55, was employed by Sheahan Financial, which, along with Clayton Savings and
Loan, was purchased by First Bank. The substantial losses 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 abut the losses concealed on
the books of Sheahan, 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, losses from the unauthorized and unapproved borrowings continued and
ultimately rose to 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 losses, 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.

The indictment alleges that ultimately these losses rose to a level of
approximately $35 million, which First Bank had to pay Bear Stearns.

Turkcan was indicted by a federal grand jury on eight felony counts of wire
fraud, one felony count of misapplication of bank money, one felony count of
making false bank entries (counts 9 and 10); and one felony count of causing
the filing a false annual report (count 11).

If Turkcan is convicted, each wire fraud count carries a maximum penalty of 30
years in prison and/or fines up to $1 million; counts 9 and 10 each carry a
maximum of 30 years in prison and/or fines up to $1 million; and count 11
carries a maximum of 20 years and/or fines up to $5 million. Restitution is
mandatory on all counts.

"The indictment alleges that Mark Turkcan, as President of First Bank
Mortgage, a division or wholly owned subsidiary of First Bank, misapplied
monies of the Bank, which caused them to pay loans, interest, commissions and
other fees of more than $35 million to Bear Stearns, due to concealment of
unauthorized and unapproved borrowings made on behalf of First Bank Mortgage,"
said U.S. Attorney Hanaway.

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

The case is being handled by First Assistant Michael W. Reap of the U.S.
Attorney's Office for the Eastern District of Missouri.

The charges set forth in an indictment are merely accusations, and a defendant
is presumed innocent until and unless proven guilty.

SOURCE U.S. Department of Justice

Jan Diltz of the Office of United States Attorney Catherine L. Hanaway,
Eastern District of Missouri, +1-314-539-2200, TDD: +1-314-539-2309