No jail time for bank executive

A rural Everly bank executive received a suspended sentence for bank activities deemed illegal by a Clay County jury.

Judge Don Courtney on Monday suspended the jail time on three Class D felony convictions involving 40-year-old Shane Habben. The charges were filed after the county attorney's office looked into charges of misconduct, which took place between July 13, 2004, and November 2006 at State Bank in Spencer.

A Clay County jury found Habben guilty of one count of second-degree theft and two counts of forgery on Oct. 2. In reaching their decision, jurors accepted evidence and testimony that Habben made what may have been risky loans to bank customers. When the loan recipients fell behind on loan payments, Habben forged their signatures on extensions in an effort to avoid the attention of the loan committee and other oversight measures.

Clay County Attorney Michael Houchins believes the forged signatures were simply attempts to cover up some of the mistakes Habben made at work.

The second-degree theft charge was filed after bank officials learned that Habben used another person's identity to successfully bid $2,500 for a repossessed Oldsmobile Bravada. He then sold the repossessed vehicle for $3,000 and kept the $500 difference.

Each count carried the potential of a five-year sentence.

"He potentially could have received a 15-year sentence, but he received a five-year sentence. That was suspended in full and he was put on probation for three years," Houchins said.

Habben also was assessed fines and surcharges totaling $6,315. He will be assessed additional court costs related to the prosecution.

Clay County Attorney Mike Houchins said he was comfortable with the suspended sentence. More than 50 people wrote letters of support on behalf of Habben, a longtime leader in the community. An Iowa Department of Corrections pre-sentence evaluation also led Courtney to the conclusion that Habben was an appropriate candidate for probation.

"Judge Courtney said he doesn't expect to see him back in the courtroom," Houchins said. "Neither do I. I think he will probably be a successful candidate on probation."

Sentencing began at 10 a.m. and was completed before the noon hour. Habben took the opportunity to speak and was tearful during a statement to the court.

"This is a tough case," Houchins said. "It was a tough case for me -- I didn't want to be there today."

Habben asked Courtney for a deferred judgment, which would essentially remove the conviction from his record.

"Judge Courtney indicated that he did not feel that was appropriate because these were intentional and deliberate felony offenses that occurred over an extended period of time," Houchins said. "It wasn't a one-time incident where you had bad judgement."

Habben is currently employed, but the felony convictions will cost him some citizenship rights including the ability to vote or own a weapon.

"I can't speak to whether or not he will ever get into banking again," Houchins said. "I would doubt it. Being a convicted felon, he's probably not bondable, so I doubt he'll be able to go back into the banking business."

The county attorney's office had Wayne Johnson, the President and CEO of State Bank, testify at the sentencing.

"He recognized that it had an impact on Shane and Shane's family," Houchins said of Johnson's testimony. "But this also had an impact on the 19 families at the State Bank. We had a number of State Bank officials who were, at one time, good friends with Shane. They had to testify and that was difficult for them."

Johnson told the court Habben broke the trust of his employers. The bank also lost staff hours when employees stepped away from their regular duties to work with investigators.

The sentencing was held at the Emmet County Courthouse in Estherville after being delayed a week and relocated from the Clay County Courthouse in Spencer.