United States v. Davy L. Hilling, United States of America v. David P. Neubauer

This appeal is from a conspiracy conviction that arose out of an elaborate kickback scheme whereby defendant Hilling, chairman of the board of directors of Irving Savings Association in Irving, Texas; defendant Neubauer, operations manager of I.C.R. Mortgage Bankers, Inc., a wholly owned subsidiary of Irving Savings; defendant Gray, chairman of the board of directors of Home Savings and Loan Association in Seattle, Washington; and defendant Olano, chairman of the board of directors of Alliance Federal Savings and Loan Association in Kenner, Louisiana, utilized their control to defraud these institutions of money by making loans and extensions of credit to each other in exchange for kickbacks from the loan proceeds or through the receipt of reciprocal loans and extensions of credit. The defendants’ scheme caused multiple loans and extensions of credit to be issued from these financial institutions, culminating in Home Savings and Loan Association transferring $2,346 million dollars to Alliance Federal Savings and Loan Association to close a fraudulent condominium deal in New Orleans.

A jury convicted Hilling and Neubauer of one count of conspiracy to violate the federal wire fraud…