Man Pleads Guilty to Swindling First National Bank of Northfield

The Lakeville man could face up to 30 years in prison after pleading guilty to one count of bank fraud in federal court for his role in swindling four banks, including the , out of more than $1.4 million in fraudulently obtained bank loans.

Kevin A. Dahl, 57, entered his guilty plea on Aug. 29. He'll be sentenced by United States District Court Judge John R. Tunheim at a later hearing that is yet to be scheduled.

Editor's note: Kevin A. Dahl should not be confused with Kevin Lee Dahle, the former DFL Senator from Northfield who is a candidate for Senate District 20 in the 2012 election.

on July 10 by the U.S. Attorney's Office with bank fraud after being accused of bilking $1.4 million from Lake Area Bank, Voyager Bank, Community Banks of Colorado and First National Bank of Northfield, which was reportedly swindled for $200,000.

In his plea agreement, Dahl admitted to charges investigated by the FBI finding that from Feb. 6, 2007, through Feb. 1, 2008, he submitted false applications and supporting documents for loans he sought from the banks. In the applications, he specifically overstated his assets, representing that he had assets worth more than $9 million, when that was not the case. Because of his fraudulent representations, Dahl obtained the loans.

In June 2011, First National Bank of Northfield was  from the federal government.

The bank, a staple of Northfield since 1872, signed an agreement for additional oversight in December 2009.

The federal government stepped in to aid hundreds of banks nationwide in the past several years as America was reeling from the Great Recession. In 2009, First National reported a net loss of roughly $600,000, Rick Estenson, vice president of business development for the bank, told Patch in June 2011. In 2008, the bank had a net income of nearly $500,000.

“We’re a community bank,” he said at that time. “We reflect the issues going on in the community.”

The net loss was also partly to blame on bad commercial loans, again, something Estenson said was not unique to First National. 

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