Friday, February 5, 2010

Missouri Man & Woman Indicted For $1.8 Million Bank Fraud Scheme

Earnest Ray Schenker, 38, of Brumley, Missouri and Donis Gayle Duncan, 39, of Nevada, Missouri, were indicted on 15 counts of bank fraud alleging they defrauded Farmers State Bank in Schell City, Missouri, in a scheme that bilked the institution out of some $1.8 million over a period of about one year. Duncan was employed as an assistant cashier at the bank where Schenker had maintained his personal accounts. According to the indictment, Duncan agreed to give immediate credit for bad checks Schenker deposited into his account, allowing him to immediately withdraw cash. Duncan reportedly tried to cover up the fraud by holding the bad checks in her desk drawer until Schenker would deposit another check that ostensibly "covered" the bad one. Between February 2003 and March 2004, Schenker deposited and was given immediate credit for more than 75 checks that were returned to Farmers as uncollectable.

Read the story here and here.

Read the DOJ announcement here.

Hat tip: reader Joe

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