Former North Carolina Banker Charged In Fraudulent Invoice Scheme That Bilked Wachovia Out Of $11.2 Million Over 9 Years

Terry Scott Welch, 47, of Mooresville, North Carolina, was charged with misappropriating $11.2 million from Wachovia Bank where he had been employed as a vice president in charge of overseeing vendor payments. According to prosecutors, Welch conspired with a series of vendors to submit false invoices for goods and services the bank never received and received kickbacks in exchange. Specifically, Welch was arrainged on charges of mail fraud and tax evasion. Two other co-conspirators, John Cousar Jr., 47, of Albemarle and Delmar Dove, 59, of Charlotte were also charged with mail fraud and tax evasion. Other vendors provided goods and services to Welch, including renovations to his home and his relatives' homes, purchased golf carts, televisions, jet skis and gas grills, among other items. Authorities allege that Welch's scheme spanned 9 years.

Read the story here and here.

Hat tip: Reader Joe.

Update (6.17.10): Welch pleaded guilty to mail fraud and tax evasion charges yesterday.

Update (7/5/11): Welch, now 48, was sentenced to 70 months in prison and ordered to pay $12.9 million in restitution.  Cousar was sentenced to nearly 3 years in prison for his part in the scheme.