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January 18, 2018: Beatrice Daily Sun: 8th Circuit affirms TierOne CEO's conviction, sentence

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The 8th U.S. Circuit Court of Appeals on Friday affirmed a former TierOne Bank CEO's criminal conviction for a scheme to defraud the bank's shareholders and mislead regulators before the bank failed in 2010.

Gilbert "Gil" Lundstrom, 76, was sentenced to 11 years in prison in 2016 and ordered to pay $3.1 million in restitution after a jury in Lincoln found him guilty of 12 counts, including wire fraud, securities fraud and falsifying bank records.

He is serving the sentence at the United States Penitentiary in Leavenworth, Kansas, and is not set for release until 2025, according to Federal Bureau of Prisons records.

In June, Circuit Judges Roger Wollman of Sioux Falls, South Dakota, and Raymond Gruender of St. Louis, Missouri, and Senior Judge Morris Arnold of Little Rock, Arkansas, heard arguments in Lundstrom's appeal in St. Paul, Minnesota.

His attorney, Dan Collins, was seeking a new trial, arguing that the trial judge should have acquitted Lundstrom because he hadn't directed others at the bank to do anything criminal.

Lundstrom also was challenging the length of his sentence and how the restitution amount was calculated.

In a 34-page opinion Friday, the three-judge panel concluded that the evidence was sufficient for the jury to find beyond a reasonable doubt "that Lundstrom possessed the knowledge and intent required to sustain his convictions."

It was Lundstrom himself who directed a spreadsheet be prepared to quantify projected losses in TierOne's loan portfolio, Wollman wrote.

Then, he said, not only did Lundstrom take no corrective action upon getting the information, he opposed the disclosure of it to the board of directors. When that effort failed, he insisted that the spreadsheets be collected at the end of the board meeting, rather than placed in the board binders, where bank regulators would see them, and ordered that notes about the board's discussion at its May 2009 meeting on nonperforming loans be removed from the official minutes.

Wollman said it was for the jury to consider and determine the truth of Lundstrom's assertions.

"The evidence pointed inexorably to the conclusion that Lundstrom knew of the deteriorating quality of the bank's loan and foreclosed-on property portfolios and its precarious overall financial condition, and that he then offered false representations in regulatory filings and press releases about TierOne's capital position and regulatory compliance," he said.

Lundstrom can seek a rehearing by the three-judge panel or a hearing by the full panel.

INDEX

SECTION 1 BEATRICE DAILY SUN PROFILE

SECTION 2 OTHER NEWS: 2018

SECTION 1 BEATRICE DAILY SUN PROFILE

1.1 ACTIVITIES

Beatrice Daily Sun publishes daily newspaper in Nebraska. Its newspaper covers issues related to entertainment, health, net guide, photo gallery, town hall, USA weekend, subscription services, and news stand, as well as classifieds and shopping information. Beatrice Daily Sun was founded by G.P. Marvin in 1902. The company is based in Beatrice, Nebraska. Beatrice Daily Sun operates as a subsidiary of Lee Enterprises, Inc.

1.2 SUMMARY

Website: http://www.beatricedailysun.com

Industry: Media

SECTION 2 OTHER NEWS: 2018

January 20: Beatrice Daily Sun: At the courthouse Jan. 20, 2018

Joshua M. McPherson, 31, Beatrice, $25; Josh R. Leseberg, 29, $75; Samuel C. Streeter, 17, Beatrice, $200; Laura A. Stephenson, 24, Papillion, $300; Erik D. Ausk, 36, Crofton, $75; Birdell Parker, 26, Lincoln, $125; Justin J. Preston, 22, Firth, $25; Rebekah J. porter, 24, Marysville, Kan., $125; Alexis G. Martin, 21, Lincoln, $75; Karla K. Hays, 59, Diller, $25.

Source: Company Website

January 19: Beatrice Daily Sun: County talks FOP negotiations

The Gage County Board of Supervisors is continuing its negotiations with the Fraternal Order of Police after a decision this week to allow sergeants into the union.

The board approved allowing sergeants at the Gage County Sheriff's Office into the union following a closed session during Wednesday's meeting.

Negotiations with the FOP are ongoing, but the decision should resolve a complaint the union previously filed with the Commission of Industrial Relations.

"We have not come to an agreement with the FOP yet with the whole contract," said County Board Chairman Myron Dorn. "This was something that they were requesting as we went into negotiations'They did file with the CIR against Gage County to have sergeants in there. There was going to be a hearing on that in early February. Since then, the county has agreed to allow the sergeants back in. This is the legal process we need to go through to have both sides agree to the fact and that case with the CIR will be withdrawn."

Board member Erich Tiemann said that sergeants were previously removed to prevent a conflict of interest that could follow being in the same union as subordinates, while board member Gary Lytle expressed frustration, saying that the FOP filed a complaint with the CIR before attempting to negotiate with the county.

"It was brought up in the first negotiating session and it was not something mutually agreed upon or disagreed upon at that point," Lytle said.

January 19: Beatrice Daily Sun: Winter storm could bring 8-10 inches of snow to Nebraska

A winter storm could bring near-blizzard conditions to parts of Nebraska this weekend, but an early look shows the Lincoln area avoiding the brunt of the weather.

Eight to 10 inches of snow are expected in parts of northern and central Nebraska beginning Sunday afternoon and into Monday. The National Weather Service is forecasting just 2 to 4 inches snowfall in Lincoln, although some models show the city receiving as much as a foot of snow.

View image on Twitter View image on Twitter NWS Omaha ✔ @NWSOmaha A Winter Storm Watch has been posted for portions of the area for Sunday afternoon through Monday morning. Stay tuned to updated forecasts.

10:32 PM - Jan 19, 2018 Replies 10 10 Retweets 10 10 likes Twitter Ads info and privacy A winter storm watch issued early Friday covers much of the state, but doesn't include southeast Nebraska.

For those in the storm's path: Expect the usual - strong winds, and freezing drizzle and rain turning into snow - but without the frigid arctic air experienced with other recent storms.

Source: Company Website

January 19: Beatrice Daily Sun: Bill would restrict state employees from workday political activities

A state senator wants to delineate what a state employee can and can't do politically.

The Hatch Act does that for federal employees, and for state and local government employees that are paid at least in part with federal funds. But it's not clear what is required of state employees, said Sen. John Kuehn of Heartwell.

Thursday, he introduced a bill (LB1129) that would prohibit state employees from holding office in a political club or party, and a list of other political activities.

Kuehn said federal employees are clear on how they can engage in political activities, and his bill would clarify for Nebraska state employees how they can engage in the political process during the workday.

It's the third year he's introduced bills dealing with "ethical, transparent behavior," he said. Last year's bill focused on lobbying and legislative behavior during public hearings. Those bills are still sitting in the Government, Military and Veterans Affairs Committee.

This year he turned his focus to state employees. He says LB1129 was not motivated by any recent controversies involving University of Nebraska employees, including a confrontation between a graduate student lecturer and an undergraduate student recruiting for a conservative organization.

Agilent Technologies Sponsored By Agilent Technologies Maximize Lab Productivity Learn How Agilent Multi-Vendor support strategy produced key benefits to one of the largest generic pharmaceutical compani.

See More "It's a broader discussion about what does the public expects of state employees when they're on state employee time.

January 19: Beatrice Daily Sun: Doctor mother concerned for son's significant other

I have been a practicing dermatologist for over 20 years. I love my profession. I am also a mother to two boys and a girl. Recently, my son who's a senior in college came home for Thanksgiving. His new girlfriend came over to our house for dinner. He told me how much he likes her and that they had been dating for about three months. She was very polite and sweet, and I really like her. She even brought wine and appetizers for me.

Herein lies the problem. During dinner, I noticed a small lump on her neck. Though it is probably benign, there is a chance it's not. It could be a precancerous growth. I wanted to tell her that she should really have that checked or ask her whether she has had it checked, but I bit my tongue. I later mentioned something to my son about it and said perhaps I could email her and let her know she should get a skin check to make sure the lump is not cancerous. My son refused to give me her email address and asked whether I could act like a mom and not like a doctor for one dinner. Am I wrong to want to contact her?

Source: Company Website

January 19: Beatrice Daily Sun: Sen. Watermeier seeks Public Service Commission seat; would cut short legislative tenure

State Sen. Dan Watermeier of Syracuse has decided to seek a seat on the Nebraska Public Service Commission with an eye on infrastructure issues such as extension of broadband internet service in rural Nebraska and increased telecommunication services.

If elected in November, Watermeier would leave the Legislature in the midst of his second four-year term.

"I took several months to consider this and decided it's the right time for me, although giving up two years in the Legislature is not something that comes easy for me," he said before Friday's formal announcement in the Capitol Rotunda.

A lineup composed of 15 fellow senators, a number of former senators and much of the state's Republican establishment joined Watermeier as he announced his candidacy.

Former Gov. Dave Heineman described the senator as "a common-sense, fiscal conservative who puts Nebraska's interests first."

Watermeier said he will focus on helping grow the state's infrastructure.

"Southeast Nebraska needs someone who will support the infrastructure needs to help our agriculture producers receive important broadband infrastructure and ensure our safety with the 911 system," University of Nebraska Regent Rob Schafer of Beatrice said.

Infrastructure issues are "right up my alley," Watermeier said during the earlier interview.

Asked his position on the proposed Keystone XL pipeline, Watermeier said he would have supported a decision to authorize its construction in Nebraska.

The PSC approved the project, but directed its construction along an alternative route other than the path that TransCanada, its developer, preferred.

Watermeier, a Republican who farms in Otoe County, is seeking the 1st District seat now held by Frank Landis of Lincoln, who is not seeking re-election.

Ron Nolte of Plattsmouth previously filed as a candidate for the Republican nomination.

In the Legislature, Watermeier holds a leadership position as chairman of its Executive Board.

January 19: Beatrice Daily Sun: New guidelines help track hypertension in children

Dear Doctor: How important is it to keep track of a child's blood pressure? I read that the American Academy of Pediatrics just updated its guidelines for screening and managing high blood pressure in kids. Is this really a problem that I need to worry about?

Dear Reader: We're so glad you brought up this very important topic. Blood pressure is a diagnostic tool that's as important in children as it is in adults. However, because blood pressure readings in children are evaluated by a different set of metrics than those of adults, the subject has often been confusing.

By now, the significance of high blood pressure, or hypertension, is well known to most of us. It's not a condition that you can readily feel, but when left untreated it can cause significant damage to your body. By the time symptoms appear, you can be dealing with a host of problems, including damage to your heart, kidneys, eyes, bones and cognitive function.

High blood pressure in children can be a predictor of the condition later in life. It can cause certain types of damage to the structures and blood vessels of a child's heart. And it can be a symptom of other serious underlying conditions, including heart or kidney problems.

January 19: Beatrice Daily Sun: Beatrice incumbents file for re-election

Two Beatrice incumbents have filed to run again, seeking to keep their positions in Beatrice city leadership.

Beatrice Mayor Stan Wirth filed to run again, as has Beatrice City Council member Joe Billesbach, who represents the 4th Ward. Both men are running for their second terms in the 2018 primary.

Wirth, who also serves as market president at Pinnacle Bank in Beatrice, was elected mayor in 2014. Wirth first came to Beatrice in 1971 from Dunbar, Neb. and said that for the past few years, he has had a focus on economic development and infrastructure, which he said will be an ongoing process.

The city has been repairing, upgrading and replacing streets, something that will continue to be budgeted for in the future. Demolishing old, unused structures in desirable areas has cleared the way for future economic development, he said.

"I think that ridding the community of some of the dilapidated buildings that we have is a real plus," Wirth said. "It opens the way for new building potential. It opens the way for new business and industry in some areas."

The opening of Hybrid Turkeys in the industrial park and the occupation of the old Husqvarna building by World Lawn have been two high points for the area, Wirth said.

January 19: Beatrice Daily Sun: City Council approves Beatrice Leadership dog park grant

On Monday night, the Beatrice City Council gave its approval for Beatrice Plus funding to go to make improvements to the Big Blue Pet Park.

The improvements are the brainchild of the 2017-2018 Leadership Beatrice class that will add a drinking fountain, two concrete pads, a dumpster, park benches, leash holders, trees and a new sign to the dog park.

The Leadership Beatrice class, now in its 11th year, picks a project to collaborate on. Last year's class installed the Little Free Libraries around town, and this year's class hopes to leave a lasting legacy as well.

In December, the Beatrice Plus advisory board unanimously approved a grant of $4,500 for the class to make improvements to the dog park.

"This will be something perpetual," said Susan Hartley, a member of Leadership Beatrice. "The city already maintains the park and they will continue to do so. The longevity is there for this to be ongoing and will be utilized long into the future."

Beatrice Plus is a contribution program in which customers of the Beatrice Board of Public Works are enrolled, unless they specifically request otherwise. The program rounds up customers' bills to the nearest dollar amount and puts that money in a fund for what the city calls "community betterment projects."

Any resident or business in Beatrice can apply for money from Beatrice Plus and their project must be approved by the Beatrice Plus board before gaining final approval from the city council.

January 18: Beatrice Daily Sun: 8th Circuit affirms TierOne CEO's conviction, sentence

The 8th U.S. Circuit Court of Appeals on Friday affirmed a former TierOne Bank CEO's criminal conviction for a scheme to defraud the bank's shareholders and mislead regulators before the bank failed in 2010.

Gilbert "Gil" Lundstrom, 76, was sentenced to 11 years in prison in 2016 and ordered to pay $3.1 million in restitution after a jury in Lincoln found him guilty of 12 counts, including wire fraud, securities fraud and falsifying bank records.

He is serving the sentence at the United States Penitentiary in Leavenworth, Kansas, and is not set for release until 2025, according to Federal Bureau of Prisons records.

In June, Circuit Judges Roger Wollman of Sioux Falls, South Dakota, and Raymond Gruender of St. Louis, Missouri, and Senior Judge Morris Arnold of Little Rock, Arkansas, heard arguments in Lundstrom's appeal in St. Paul, Minnesota.

His attorney, Dan Collins, was seeking a new trial, arguing that the trial judge should have acquitted Lundstrom because he hadn't directed others at the bank to do anything criminal.

Lundstrom also was challenging the length of his sentence and how the restitution amount was calculated.

In a 34-page opinion Friday, the three-judge panel concluded that the evidence was sufficient for the jury to find beyond a reasonable doubt "that Lundstrom possessed the knowledge and intent required to sustain his convictions."

It was Lundstrom himself who directed a spreadsheet be prepared to quantify projected losses in TierOne's loan portfolio, Wollman wrote.

Then, he said, not only did Lundstrom take no corrective action upon getting the information, he opposed the disclosure of it to the board of directors.

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