A former vice president of the now defunct La Jolla Bank who took bribes was sentenced Monday to home detention for one year. She was ordered to come up with $1.45 million in restitution.
Amalia Martinez, 52, was given credit for several days previously spent in jail by U.S. District Court Judge Anthony Battaglia who said he was not imposing any more jail time in light of circumstances in her family.
Martinez’s husband was hospitalized this last weekend and Amalia Martinez is caring for her sister who has epilepsy, said her attorney, Michael Berg.
Martinez currently works at another bank in the collection department, but Battaglia remarked that her felony conviction of conspiracy to misapply bank funds may preclude her from continuing to work there.
Martinez will be on electronic surveillance on conditions of three years probation. Work, hospital visits, religious services, dentist and medical appointments are all exceptions from the home detention order.
Assistant U.S. Attorney Emily Allen asked for a 21-month prison term. Martinez worked at La Jolla Bank for 10 years, and her last position was vice president and Small Business Administration lending department manager. The bank failed in February 2010 with an outstanding debt of $1 billion which was absorbed by the Federal Deposit Insurance Corporation(FDIC), and ultimately, taxpayers, according to the U.S. Attorney. Martinez’s restitution order says she should pay $482,283 to the FDIC, and $973,789 to the Small Business Administration.
“Mrs. Martinez knows she will be paying it back for the rest of her life,” said Berg.
Berg said Martinez did not have a lavish lifestyle, and described her as “a pawn” of others who have not been charged. He said Martinez was “sexually harassed” at the bank by one male executive. Berg said senior officials directed her to okay risky loans.
“You’re getting every benefit of the doubt today,” said Battaglia, who noted that three other co-defendants also received home detention sentences.
Battaglia sentenced former loan broker Jocelyn J. Brown, 60, on Aug. 15 to 10 months of home confinement on terms of three years probation. He ordered Brown to pay restitution of $82,185, which Battaglia said represented her commissions.
Brown pleaded guilty to making false statements to a federal agent about the bribes she paid to Martinez. The prosecutor sought a 10-month prison term for Brown. Both Brown and Martinez could have been sentenced to five years in federal prison.
Brown is the caretaker for her elderly mother who has dementia. Battaglia said he imposed home detention for Brown so she can “care for Mom” in her home.
Brown told the judge her reputation as a loan broker was ruined and “I can’t work in a bank anymore.” She asked Battaglia for “a second chance to prove to people I’m not a bad person.”
Brown’s attorney, Ira Plummer, said “she was put in a position where she was asked to (pay) kickbacks” in exchange for approving risky loans. He said businesses and others pressured her to approve bad loans.
Both Martinez and Brown apologized for their roles in the case. They both had no criminal records before this offense.