From the Lansing State Journal on 3/15/2015:
A former employee at Mason State Bank has been indicted on a charge that she embezzled $160,000 from the bank over a three-year period, federal officials said.
Megan Kolberg, 36, of Mason, was indicted March 11 in U.S. District Court in Grand Rapids for embezzlement over $1,000 and appeared before a magistrate on Friday, the U.S. Attorney's Office said in a news release.
The government alleges Kolberg stole cash from the bank from December 2009 until May 2013 and concealed her actions by making false entries in the bank's records.
If convicted, Kolberg would face up to 30 years in prison and a fine of up to $1 million. She has been released on bond, it said.
The case is being investigated by the FBI and Mason police, the attorney's office said.
Lansing Community Newspapers readers chose Kolberg as their "favorite bank teller" in the company's 2011 People's Choice edition. Lansing Community Newspapers is a publication of the Lansing State Journal.
There was no answer at Kolberg's listed phone number on Saturday. She didn't return Facebook messages seeking comment.
It was not clear on Saturday whether she had retained an attorney.
Showing posts with label bank embezzlement. Show all posts
Showing posts with label bank embezzlement. Show all posts
Monday, March 16, 2015
Monday, March 9, 2015
Former Texas Banker Sentened In $462K Embezzlement Scheme
From The Associated Press on 3/3/2015:
A former Houston banker must serve nearly two years in prison for stealing more than $462,000 and using some funds to buy gifts for co-workers.
Quinhun Rollins was sentenced Monday in Houston. The 42-year-old woman in October pleaded guilty to bank fraud.
Rollins must serve 33 months behind bars and repay the money stolen since 2012 from a Green Bank in Houston.
Investigators say Rollins funneled unauthorized bank payments, disguised as funds meant for vendors, to her personal account at another bank.
Authorities say Rollins used the stolen money to provide gifts to fellow employees, who were not aware of the scam, and also to fund parties at her house.
A former Houston banker must serve nearly two years in prison for stealing more than $462,000 and using some funds to buy gifts for co-workers.
Quinhun Rollins was sentenced Monday in Houston. The 42-year-old woman in October pleaded guilty to bank fraud.
Rollins must serve 33 months behind bars and repay the money stolen since 2012 from a Green Bank in Houston.
Investigators say Rollins funneled unauthorized bank payments, disguised as funds meant for vendors, to her personal account at another bank.
Authorities say Rollins used the stolen money to provide gifts to fellow employees, who were not aware of the scam, and also to fund parties at her house.
Tuesday, March 3, 2015
Missouri Woman Charged With Embezzling $410K From Bank
From the Associated Press on 2/26/2015:
A woman from Missouri's Jefferson City has been indicted on federal charges that she embezzled $410,000 from the bank where she worked.
A federal grand jury in Jefferson City returned the indictment accusing 28-year-old Katherine Nicholle Brown of one count of felony embezzlement.
Authorities allege that Brown worked as the lead teller at Hawthorn Bank in Jefferson City when she pilfered the money from the bank vault from December 2012 to September of last year.
...
A woman from Missouri's Jefferson City has been indicted on federal charges that she embezzled $410,000 from the bank where she worked.
A federal grand jury in Jefferson City returned the indictment accusing 28-year-old Katherine Nicholle Brown of one count of felony embezzlement.
Authorities allege that Brown worked as the lead teller at Hawthorn Bank in Jefferson City when she pilfered the money from the bank vault from December 2012 to September of last year.
...
Texas Woman Setenced For Embezzling $366K From Bank
From the Statesman on 2/26/2015:
A Murchison woman has been sentenced to federal prison for embezzlement in the Eastern District of Texas, U.S. Attorney John M. Bales announced.
Deborah Cornett, 55, pleaded guilty June 9, 2014 to embezzlement by a bank employee and was sentenced to 41 months in federal prison February 17, 2015 by U.S. District Judge Leonard Davis. Cornett was also ordered to pay restitution in the amount of $365,988.43.
“The actual sentence is a function of several complicated factors but principally, in a case like that, it's going to be based on the amount of the loss,” Bales said. “She didn't have any criminal history so she benefited from that.” Bales explained the sentencing is more severe if a person has a prior criminal history.
According to information presented in court, from November 2007 to May 2013, Cornett was an officer and employee of the First State Bank of Ben Wheeler. During that time, Cornett embezzled from bank payroll accounts, the bank Christmas Club account, certificates of deposit, and from fraudulently issued bank loans.
“We'll virtually always prosecute folks who are in an officer capacity or have some sort of management responsibility at the bank and she certainly fell into that,” Bales said.
The 41-month sentence is based on the amount embezzled and the fact Cornett was considered a “person in trust” at the bank. Additional time is often added for the more elaborate schemes carried out by a person who has “taken advantage of their position.”
Bales went on to explain how embezzlement can occur at banks, especially smaller-town banks where everybody knows everybody and where something like this “would never happen.”
“In this case it looks like she understood how the accounting was on those certain accounts there, where they were. This happens a lot – where there are general accounts at the bank, where they sort of park money, or where there's accounts that there's little activity, nobody's really going to notice, and it looks like she took advantage of both of those situations to steal.”
Once Cornett finishes serving her time Bales said she will be on supervised release, be barred from any future banking jobs, and be required to continue paying restitution. The restitution will continue even after she completes her supervised release.
Cornett will be required to submit financial statements on any money earned, whether through a job, inheritance, lottery or gambling winnings or through savings accounts, real estate holdings or other personal properties. However, Bales said his office will not rely solely on her submitted statements.
“We have a financial litigation unit that's actually in Tyler and their job is to track down assets from here til Kingdom Come,” Bales said. “So she'll be dealing with this restitution long after she's served her sentence.”
Restitution, Bales explained, is based on the amount of loss related to the crimes of conviction “readily known about.”
Bales said his office “will not rest” when it comes to requiring a person to pay back restitution.
“The judgment is good for 20 years under the state law and we will actually move to extend that,” Bales said. “Somebody, long after I'm gone, will still be trying to collect that money because it does take a long time.”
It is important to collect the money, Bales explained, because in most instances it has already been spent before the person is caught.
While Bales' “name is on all the paperwork” and he is ultimately responsible for the prosecution, the actual case was worked by Assistant U.S. Attorney Nathaniel C. Kummerfeld, a “very good young prosecutor” according to Bales. This case was also investigated by the Federal Bureau of Investigation.
Bales and his office are happy with the outcome of the case.
“The case was resolved fairly and justly under the law and the facts,” Bales said. “Really it's a tragedy, it sounds like she was somebody who was trusted by the bank.”
A Murchison woman has been sentenced to federal prison for embezzlement in the Eastern District of Texas, U.S. Attorney John M. Bales announced.
Deborah Cornett, 55, pleaded guilty June 9, 2014 to embezzlement by a bank employee and was sentenced to 41 months in federal prison February 17, 2015 by U.S. District Judge Leonard Davis. Cornett was also ordered to pay restitution in the amount of $365,988.43.
“The actual sentence is a function of several complicated factors but principally, in a case like that, it's going to be based on the amount of the loss,” Bales said. “She didn't have any criminal history so she benefited from that.” Bales explained the sentencing is more severe if a person has a prior criminal history.
According to information presented in court, from November 2007 to May 2013, Cornett was an officer and employee of the First State Bank of Ben Wheeler. During that time, Cornett embezzled from bank payroll accounts, the bank Christmas Club account, certificates of deposit, and from fraudulently issued bank loans.
“We'll virtually always prosecute folks who are in an officer capacity or have some sort of management responsibility at the bank and she certainly fell into that,” Bales said.
The 41-month sentence is based on the amount embezzled and the fact Cornett was considered a “person in trust” at the bank. Additional time is often added for the more elaborate schemes carried out by a person who has “taken advantage of their position.”
Bales went on to explain how embezzlement can occur at banks, especially smaller-town banks where everybody knows everybody and where something like this “would never happen.”
“In this case it looks like she understood how the accounting was on those certain accounts there, where they were. This happens a lot – where there are general accounts at the bank, where they sort of park money, or where there's accounts that there's little activity, nobody's really going to notice, and it looks like she took advantage of both of those situations to steal.”
Once Cornett finishes serving her time Bales said she will be on supervised release, be barred from any future banking jobs, and be required to continue paying restitution. The restitution will continue even after she completes her supervised release.
Cornett will be required to submit financial statements on any money earned, whether through a job, inheritance, lottery or gambling winnings or through savings accounts, real estate holdings or other personal properties. However, Bales said his office will not rely solely on her submitted statements.
“We have a financial litigation unit that's actually in Tyler and their job is to track down assets from here til Kingdom Come,” Bales said. “So she'll be dealing with this restitution long after she's served her sentence.”
Restitution, Bales explained, is based on the amount of loss related to the crimes of conviction “readily known about.”
Bales said his office “will not rest” when it comes to requiring a person to pay back restitution.
“The judgment is good for 20 years under the state law and we will actually move to extend that,” Bales said. “Somebody, long after I'm gone, will still be trying to collect that money because it does take a long time.”
It is important to collect the money, Bales explained, because in most instances it has already been spent before the person is caught.
While Bales' “name is on all the paperwork” and he is ultimately responsible for the prosecution, the actual case was worked by Assistant U.S. Attorney Nathaniel C. Kummerfeld, a “very good young prosecutor” according to Bales. This case was also investigated by the Federal Bureau of Investigation.
Bales and his office are happy with the outcome of the case.
“The case was resolved fairly and justly under the law and the facts,” Bales said. “Really it's a tragedy, it sounds like she was somebody who was trusted by the bank.”
Wednesday, February 25, 2015
Iowa Woman Pleads Guilty To Embezzling $123K From Bank
From The Gazette on 2/21/2015:
A former Manchester bank secretary pleaded guilty Friday to embezzling over $123,000 from the bank over a two-year period.
Ann Marie Sperfslage, 54, pleaded guilty in U.S. District Court to one count of embezzlement by a bank employee. During the hearing, Sperfslage, the former secretary to the bank’s executive vice president, admitted embezzling $123,181 from May 2008 to May 2010 from First State Bank. She also admitted to embezzling with the intent to defraud the bank.
According to the plea agreement, she had worked at the bank since 1992. She was the vice president’s secretary and also worked with the bank’s software and computer systems until she was terminated in 2010. According to the plea agreement, Sperfslage created false electronic records and documents showing that the bank had loaned her and her husband more money than the bank actually loaned them. They had two home equity loans for $50,000 and $35,000 and another loan for $3,500, but she changed the electronic records to $99,700 and $90,000 for the home equity loans and $18,000 on the other loan.
She also deposited other customers’ deposits in her accounts so that it appeared as if she was making payments on the loan, according to the plea agreement.
Sperfslage also reversed the false deposits and then deposited the funds into the correct accounts before the customers and bank discovered she had misapplied the deposits. She misapplied $81,946 in customers’ deposits over the two years, the plea deal said.
She faces up to 30 years in prison and fines up to $1 million. She also will be ordered to pay restitution.
A former Manchester bank secretary pleaded guilty Friday to embezzling over $123,000 from the bank over a two-year period.
Ann Marie Sperfslage, 54, pleaded guilty in U.S. District Court to one count of embezzlement by a bank employee. During the hearing, Sperfslage, the former secretary to the bank’s executive vice president, admitted embezzling $123,181 from May 2008 to May 2010 from First State Bank. She also admitted to embezzling with the intent to defraud the bank.
According to the plea agreement, she had worked at the bank since 1992. She was the vice president’s secretary and also worked with the bank’s software and computer systems until she was terminated in 2010. According to the plea agreement, Sperfslage created false electronic records and documents showing that the bank had loaned her and her husband more money than the bank actually loaned them. They had two home equity loans for $50,000 and $35,000 and another loan for $3,500, but she changed the electronic records to $99,700 and $90,000 for the home equity loans and $18,000 on the other loan.
She also deposited other customers’ deposits in her accounts so that it appeared as if she was making payments on the loan, according to the plea agreement.
Sperfslage also reversed the false deposits and then deposited the funds into the correct accounts before the customers and bank discovered she had misapplied the deposits. She misapplied $81,946 in customers’ deposits over the two years, the plea deal said.
She faces up to 30 years in prison and fines up to $1 million. She also will be ordered to pay restitution.
Tuesday, February 17, 2015
Texas Woman Sentenced To 3+ Years For Embezzling $366K From Bank
From KLTV Ch.7 on 2/17/2015:
A 55-year-old Murchison, Texas woman has been sentenced to federal prison for embezzlement in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Deborah Cornett pleaded guilty on June 9, 2014 to embezzlement by a bank employee and was sentenced to 41 months in federal prison Tuesday by U.S. District Judge Leonard Davis. Cornett was also ordered to pay restitution in the amount of $365,988.43.
According to information presented in court, from November 2007 to May 2013, Cornett was an officer and employee of the First State Bank of Ben Wheeler. During that time, Cornett embezzled from bank payroll accounts, the bank Christmas Club account, certificates of deposit, and from fraudulently issued bank loans.
...
Read the whole story here.
A 55-year-old Murchison, Texas woman has been sentenced to federal prison for embezzlement in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
According to information presented in court, from November 2007 to May 2013, Cornett was an officer and employee of the First State Bank of Ben Wheeler. During that time, Cornett embezzled from bank payroll accounts, the bank Christmas Club account, certificates of deposit, and from fraudulently issued bank loans.
...
Read the whole story here.
Friday, January 16, 2015
Ohio Woman Accused Of Embezzling $860K From Savings & Loan Customer
From WFMJ on 1/14/15:
EAST LIVERPOOL, Ohio - A retired employee of Home Savings and Loan is accused of stealing $860,000 over a six year period.
A federal grand jury has returned a one-count indictment charging Mary Jo Schmidbauer, age 67, of East Liverpool, Ohio, with bank fraud.
Prosecutors say that in 2007, when Schmidbauer was employed by Home Savings and Loan in East Liverpool, she obtained permission from a person identified only as “J.M.” to manage money that J.M. deposited into accounts maintained by the bank.
After retiring from her position, Schmidbauer obtained a power of attorney from J.M. to continue managing the accounts maintained by Home Savings and Loan, according to the indictment.
Schmidbauer also allegedly withdrew cash from J.M.'s accounts for Schmidbauer's own personal use and transferred money from J.M.'s accounts into Schmidbauer's accounts. Schmidbauer then withdrew that money for her own personal use, according to the indictment.
The indictment says that Schmidbauer obtained a total of approximately $860,000 from J.M.'s accounts between 2007 and 2013.
....
Read the whole story here.
EAST LIVERPOOL, Ohio - A retired employee of Home Savings and Loan is accused of stealing $860,000 over a six year period.
A federal grand jury has returned a one-count indictment charging Mary Jo Schmidbauer, age 67, of East Liverpool, Ohio, with bank fraud.
Prosecutors say that in 2007, when Schmidbauer was employed by Home Savings and Loan in East Liverpool, she obtained permission from a person identified only as “J.M.” to manage money that J.M. deposited into accounts maintained by the bank.
After retiring from her position, Schmidbauer obtained a power of attorney from J.M. to continue managing the accounts maintained by Home Savings and Loan, according to the indictment.
Schmidbauer also allegedly withdrew cash from J.M.'s accounts for Schmidbauer's own personal use and transferred money from J.M.'s accounts into Schmidbauer's accounts. Schmidbauer then withdrew that money for her own personal use, according to the indictment.
The indictment says that Schmidbauer obtained a total of approximately $860,000 from J.M.'s accounts between 2007 and 2013.
....
Read the whole story here.
Wednesday, January 14, 2015
Connecticut Woman Sentenced For Embezzling More Than $450K From Bank over 20+ Years
Fromm WTNH Ch. 8 on 1/13/15:
A Bridgeport woman has been sentenced to a year and a day in prison for stealing more than $450,000 from a bank.
Maria Rosa Esteves, 41, took the money by writing herself cashiers’ checks while working for People’s United Bank between 1993 and last year.
She was found guilty of the crime and sentenced to prison time plus six months of home confinement and another three years of supervision. A U.S. District Judge also ordered Esteves to pay back the money she took and perform community services.
Esteves must report to prison in March.
A Bridgeport woman has been sentenced to a year and a day in prison for stealing more than $450,000 from a bank.
Maria Rosa Esteves, 41, took the money by writing herself cashiers’ checks while working for People’s United Bank between 1993 and last year.
She was found guilty of the crime and sentenced to prison time plus six months of home confinement and another three years of supervision. A U.S. District Judge also ordered Esteves to pay back the money she took and perform community services.
Esteves must report to prison in March.
Thursday, December 18, 2014
Pennsylvania Woman Sentenced To 2 Years For Embezzling $458K From Bank
From the Times-Dispatch on 12/15/2014:
A Pennsylvania woman was sentenced to two years in prison Monday by U.S. District Judge Robert E. Payne in a $450,000 bank fraud.
Jeannetta Matthews, 27, of Upper Darby, Pa., was ordered to pay $457,967 in restitution to Wells Fargo Bank. She pleaded guilty in July to conspiracy to commit bank fraud.
Court documents say Matthews was a Wells Fargo bank employee in Pennsylvania who agreed in October 2012 to sell account and personal information for more than 20 bank customers.
Co-conspirators obtained false identification and credit cards in the names of the customers and impersonated them at Wells Fargo branches in Virginia, South Carolina, California, Georgia, and New Jersey. Two co-conspirators were previously sentenced to roughly five years and four years for their roles.
...
Read the whole story here.
A Pennsylvania woman was sentenced to two years in prison Monday by U.S. District Judge Robert E. Payne in a $450,000 bank fraud.
Jeannetta Matthews, 27, of Upper Darby, Pa., was ordered to pay $457,967 in restitution to Wells Fargo Bank. She pleaded guilty in July to conspiracy to commit bank fraud.
Court documents say Matthews was a Wells Fargo bank employee in Pennsylvania who agreed in October 2012 to sell account and personal information for more than 20 bank customers.
Co-conspirators obtained false identification and credit cards in the names of the customers and impersonated them at Wells Fargo branches in Virginia, South Carolina, California, Georgia, and New Jersey. Two co-conspirators were previously sentenced to roughly five years and four years for their roles.
...
Read the whole story here.
Friday, December 5, 2014
Illinois Woman Sentenced To 2 Years For Embezzling $229K From Bank
From WSIL TV 3 on 12/5/2014:
A Jackson County woman has been sentenced to two years in prison for stealing from the bank where she worked.
Buffy A. Bastien, 42, was sentenced Thursday after pleading guilty to one count of bank embezzlement in June.
Prosecutors said Bastien took approximately $229,000 from the Bank of Carbondale between 2010 and Feb. 2014.
In addition to the two-year prison term, Bastien was also sentenced to five years supervised release and restitution. The U.S. Attorney's Office for the Southern District of Illinois says Bastien has already repaid $48,721.80 and still owes $180,500.
Read the whole story here.
A Jackson County woman has been sentenced to two years in prison for stealing from the bank where she worked.
Buffy A. Bastien, 42, was sentenced Thursday after pleading guilty to one count of bank embezzlement in June.
Prosecutors said Bastien took approximately $229,000 from the Bank of Carbondale between 2010 and Feb. 2014.
In addition to the two-year prison term, Bastien was also sentenced to five years supervised release and restitution. The U.S. Attorney's Office for the Southern District of Illinois says Bastien has already repaid $48,721.80 and still owes $180,500.
Read the whole story here.
Tuesday, November 25, 2014
Former Delaware Bank CEO Sentenced In $1.5 Million Fraud Case
From the News Journal on 11/25/2014:
A former bank chief executive was sentenced Monday to two years in prison for a scheme involving the use of his bank's money to pay personal debts.
James A. Ladio, 58, who founded and headed MidCoast Community Bank in Wilmington, received what some considered a stiff sentence, considering his substantial cooperation into the federal investigation of Wilmington Trust Co.
Ladio pleaded guilty last year to two counts of bank fraud and two counts of money laundering. He had asked U.S. District Judge Richard Andrews for home detention or community confinement. Instead, Ladio will report to prison on Jan. 9.
"This is a tough day for me," said Ladio, who seemed more self-assured than he did at his plea hearing last year. "I will never, ever be able to accept the actions I did. Remorse is something that eats you from inside."
Ladio said he had gotten himself into "desperate financial circumstances" following years of mounting debt that began with a divorce. In a letter to the judge, Ladio said the debt was always manageable until he invested beyond his means in the start-up of MidCoast. When the recession hit, he was forced to borrow more money to meet his loan obligations, he said.
Unable to pay the loans he owed Wilmington Trust, Ladio convinced two MidCoast customers to withdraw loan proceeds from the bank and turn the money over to him as private loans, prosecutors say. He then used the private loan money to pay off his obligations at Wilmington Trust.
The "agonizing" reflection Ladio did over the last year resulted in the decision to make amends, he told Andrews. That meant cooperating with the government in its Wilmington Trust probe and starting a business that would allow him to repay his debts.
"During this time, I decided to move forward – I willed myself," Ladio said.
...
Read the whole story here.
A former bank chief executive was sentenced Monday to two years in prison for a scheme involving the use of his bank's money to pay personal debts.
James A. Ladio, 58, who founded and headed MidCoast Community Bank in Wilmington, received what some considered a stiff sentence, considering his substantial cooperation into the federal investigation of Wilmington Trust Co.
Ladio pleaded guilty last year to two counts of bank fraud and two counts of money laundering. He had asked U.S. District Judge Richard Andrews for home detention or community confinement. Instead, Ladio will report to prison on Jan. 9.
"This is a tough day for me," said Ladio, who seemed more self-assured than he did at his plea hearing last year. "I will never, ever be able to accept the actions I did. Remorse is something that eats you from inside."
Ladio said he had gotten himself into "desperate financial circumstances" following years of mounting debt that began with a divorce. In a letter to the judge, Ladio said the debt was always manageable until he invested beyond his means in the start-up of MidCoast. When the recession hit, he was forced to borrow more money to meet his loan obligations, he said.
Unable to pay the loans he owed Wilmington Trust, Ladio convinced two MidCoast customers to withdraw loan proceeds from the bank and turn the money over to him as private loans, prosecutors say. He then used the private loan money to pay off his obligations at Wilmington Trust.
The "agonizing" reflection Ladio did over the last year resulted in the decision to make amends, he told Andrews. That meant cooperating with the government in its Wilmington Trust probe and starting a business that would allow him to repay his debts.
"During this time, I decided to move forward – I willed myself," Ladio said.
...
Read the whole story here.
Former Connecticut Municipal Councilman Pleads Guilty To Embezzling More Than $100K
From WTNH Ch. 8 on 11/24/2014:
A former West Haven City Councilman admitted Monday to stealing more than $100,000 in an embezzlement scheme.
Stephen DeCrescenzo, 37, of West Haven, waived his right to an indictment and plead guilty in U.S. District Court to one count of wire fraud stemming from an embezzlement scheme.
According to court documents, DeCrescenzo was working as a personal banker at JP Morgan Chase in New Canaan. Between September of 2008 and November of 2011, DeCrescenzo embezzled $106,028 in funds from customer accounts by transferring the funds into a separate account to which he had access.
As part of the deception, DeCrescenzo disguised numerous withdrawals from the accounts as authorized cash withdrawals by customers when, in fact, he had stolen the money, officials said. DeCrescenzo also wired funds stolen from a customer account into another bank account of his own.
DeCrescenzo faces up to 20 years in prison. He is free on $50,000 bond. He is due back in court for sentencing on February 17, 2015.
DeCrescenzo, who was a member of the West Haven City Council, resigned from the Council on Monday.
Update (2/17/2015): DeCrescenzo was sentenced to three years of probation. He reportedly blamed his actions on gambling. Read an update of the story here.
A former West Haven City Councilman admitted Monday to stealing more than $100,000 in an embezzlement scheme.
Stephen DeCrescenzo, 37, of West Haven, waived his right to an indictment and plead guilty in U.S. District Court to one count of wire fraud stemming from an embezzlement scheme.
According to court documents, DeCrescenzo was working as a personal banker at JP Morgan Chase in New Canaan. Between September of 2008 and November of 2011, DeCrescenzo embezzled $106,028 in funds from customer accounts by transferring the funds into a separate account to which he had access.
As part of the deception, DeCrescenzo disguised numerous withdrawals from the accounts as authorized cash withdrawals by customers when, in fact, he had stolen the money, officials said. DeCrescenzo also wired funds stolen from a customer account into another bank account of his own.
DeCrescenzo faces up to 20 years in prison. He is free on $50,000 bond. He is due back in court for sentencing on February 17, 2015.
DeCrescenzo, who was a member of the West Haven City Council, resigned from the Council on Monday.
Update (2/17/2015): DeCrescenzo was sentenced to three years of probation. He reportedly blamed his actions on gambling. Read an update of the story here.
New Jersey Woman Sentenced For Embezzling $260K From Bank
From Newsday on 11/24/2014:
A former bank manager who embezzled more than $260,000 has been sentenced to 30 months in prison.
Season Wengert, of Franklinville, will also have to serve three years of supervised release once she's freed. She had pleaded guilty in August to a bank embezzlement charge.
Prosecutors say the thefts occurred between September 2007 and January 2013, when the 32-year-old Wengert was branch manager of a southern New Jersey bank. But they haven't said what the money was used for.
Prosecutors say Wengert stole $263,864 by fraudulently conducting online computer transfers of money from 38 accounts belonging to 23 customers into accounts owned by her or her husband. She also withdrew money from customers' accounts and deposited it into her accounts.
The 32-year-old Wengert also must pay $261,654 in restitution.
A former bank manager who embezzled more than $260,000 has been sentenced to 30 months in prison.
Season Wengert, of Franklinville, will also have to serve three years of supervised release once she's freed. She had pleaded guilty in August to a bank embezzlement charge.
Prosecutors say the thefts occurred between September 2007 and January 2013, when the 32-year-old Wengert was branch manager of a southern New Jersey bank. But they haven't said what the money was used for.
Prosecutors say Wengert stole $263,864 by fraudulently conducting online computer transfers of money from 38 accounts belonging to 23 customers into accounts owned by her or her husband. She also withdrew money from customers' accounts and deposited it into her accounts.
The 32-year-old Wengert also must pay $261,654 in restitution.
Monday, October 27, 2014
Former New Mexico Credit Union Employee Pleads Guilty To Embezzling $118K
From the FBI on 10/21/2014:
ALBUQUERQUE—Louisa Gabaldon, 43, of Belen, N.M., pleaded guilty this morning to a federal bank fraud charge under a plea agreement with the U.S. Attorney’s Office.
Gabaldon was indicted on Aug. 7, 2013, and charged with 12 counts of bank fraud. The indictment alleged that from Jan. 2004 through July 2010, Gabaldon engaged in an illegal scheme to defraud her employer, the Belen Railroad Employees Credit Union (Credit Union) by making fraudulent withdrawal of funds from accounts belonging to the Credit Union’s customers.
Today, Gabaldon pled guilty to Count 5 of the indictment charging her with fraudulently withdrawing $31,000 from a customer’s account on July 31, 2006. The plea agreement, however, requires Gabaldon to pay $118,376.56 in restitution to cover losses associated with all 12 counts in the indictment as well as related losses suffered by the Credit Union.
In entering her guilty plea, Gabaldon admitted that, while employed by the Credit Union, she had loan approval which permitted her—when authorized by customers—to make withdrawals from customers’ accounts, transfer funds among their accounts, increase the amount of their loan accounts and open new loans in their names. Gabaldon admitted that, without the knowledge or permission of Credit Union customers, she added amounts to customers’ existing loan accounts and opened new loans in their names and used the funds to pay for her own debts and to make a partial payment for the purchase of a home. In order to conceal her fraudulent activity, Gabaldon moved funds among customers’ accounts to make it appear as if loans had been repaid or funds were replaced.
At sentencing, Gabaldon faces a maximum penalty of 30 years in prison. She remains on conditions of release pending her sentencing hearing, which has yet to be scheduled.
ALBUQUERQUE—Louisa Gabaldon, 43, of Belen, N.M., pleaded guilty this morning to a federal bank fraud charge under a plea agreement with the U.S. Attorney’s Office.
Gabaldon was indicted on Aug. 7, 2013, and charged with 12 counts of bank fraud. The indictment alleged that from Jan. 2004 through July 2010, Gabaldon engaged in an illegal scheme to defraud her employer, the Belen Railroad Employees Credit Union (Credit Union) by making fraudulent withdrawal of funds from accounts belonging to the Credit Union’s customers.
Today, Gabaldon pled guilty to Count 5 of the indictment charging her with fraudulently withdrawing $31,000 from a customer’s account on July 31, 2006. The plea agreement, however, requires Gabaldon to pay $118,376.56 in restitution to cover losses associated with all 12 counts in the indictment as well as related losses suffered by the Credit Union.
In entering her guilty plea, Gabaldon admitted that, while employed by the Credit Union, she had loan approval which permitted her—when authorized by customers—to make withdrawals from customers’ accounts, transfer funds among their accounts, increase the amount of their loan accounts and open new loans in their names. Gabaldon admitted that, without the knowledge or permission of Credit Union customers, she added amounts to customers’ existing loan accounts and opened new loans in their names and used the funds to pay for her own debts and to make a partial payment for the purchase of a home. In order to conceal her fraudulent activity, Gabaldon moved funds among customers’ accounts to make it appear as if loans had been repaid or funds were replaced.
At sentencing, Gabaldon faces a maximum penalty of 30 years in prison. She remains on conditions of release pending her sentencing hearing, which has yet to be scheduled.
Tuesday, March 4, 2014
Four Women Separately Banned From Involvement In Federally Insured Financial Institutions For Fraud & Embezzlement
From the Credit Union Times on 2/28/14:
The NCUA issued four orders on Friday prohibiting individuals from participating in the affairs of any federally insured financial institution. Violators were all banned for theft, with court-ordered restitution amounts ranging from less than $20,000 to more than $1 million.
Carol Ann Ferraro, former executive vice president of $107 million Chaffey Federal Credit Union in Upland, Calif., was sentenced to 30 months in prison, five years of supervised release and ordered to pay $1,052,790.56 in restitution for embezzlement.
...
Jeannette Abbott, a former employee of the $86.8 million Malheur Federal Credit Union in Ontario, Ore., pleaded guilty to theft, embezzlement or misapplication by a credit union officer, which carried a four-month prison sentence, three years of supervised release and restitution in the amount of $93,749.40.
Justine Martin, a former employee of the $633.6 million Leominster Credit Union in Leominster, Mass., “admitted to facts sufficient for a finding of guilt to the charge of larceny over $250,” said the NCUA. She must serve five years of supervised probation and pay $17,990 in restitution.
Nancy Ann Secoda, a former employee of $407 million Vons Employees Federal Credit Union in El Monte, Calif., was convicted for grand theft and willfully acquiring personal information. Secoda pleaded no contest and was ultimately sentenced to five years in prison and required to pay $712,253.58 in restitution.
...
Read the whole story here.
The NCUA issued four orders on Friday prohibiting individuals from participating in the affairs of any federally insured financial institution. Violators were all banned for theft, with court-ordered restitution amounts ranging from less than $20,000 to more than $1 million.
Carol Ann Ferraro, former executive vice president of $107 million Chaffey Federal Credit Union in Upland, Calif., was sentenced to 30 months in prison, five years of supervised release and ordered to pay $1,052,790.56 in restitution for embezzlement.
...
Jeannette Abbott, a former employee of the $86.8 million Malheur Federal Credit Union in Ontario, Ore., pleaded guilty to theft, embezzlement or misapplication by a credit union officer, which carried a four-month prison sentence, three years of supervised release and restitution in the amount of $93,749.40.
Justine Martin, a former employee of the $633.6 million Leominster Credit Union in Leominster, Mass., “admitted to facts sufficient for a finding of guilt to the charge of larceny over $250,” said the NCUA. She must serve five years of supervised probation and pay $17,990 in restitution.
Nancy Ann Secoda, a former employee of $407 million Vons Employees Federal Credit Union in El Monte, Calif., was convicted for grand theft and willfully acquiring personal information. Secoda pleaded no contest and was ultimately sentenced to five years in prison and required to pay $712,253.58 in restitution.
...
Read the whole story here.
Thursday, February 27, 2014
Former Bank Employee In Missouri Pleads Guilty To Charges She Embezzled $650K
From the Kansas City Business Journal on 2/27/14:
Lisa Taylor, a former UMB Bank employee who was recently charged with embezzling more than $650,000, pleaded guilty Thursday in federal court.
Taylor worked as a closing account specialist at UMB from May 2006 until October 2010. She was fired after a corporate fraud investigation determined that she had been using her position to generate fraudulent checks.
According to a release, Taylor requested 377 checks payable to her friends and family totaling $650,659. They would cash or deposit the checks in exchange for a portion of the money.
Eleven of those friends and family members also have pleaded guilty for their role in the scheme.
...
Read the story here.
Lisa Taylor, a former UMB Bank employee who was recently charged with embezzling more than $650,000, pleaded guilty Thursday in federal court.
Taylor worked as a closing account specialist at UMB from May 2006 until October 2010. She was fired after a corporate fraud investigation determined that she had been using her position to generate fraudulent checks.
According to a release, Taylor requested 377 checks payable to her friends and family totaling $650,659. They would cash or deposit the checks in exchange for a portion of the money.
Eleven of those friends and family members also have pleaded guilty for their role in the scheme.
...
Read the story here.
Pennsylvania Man Arrested In $2.5 Bank Embezzlement Case - Also Faces Fraud Charges For Ripping Off eBay Customers
From the Pittsburgh Tribune-Review on 2/27/14:
A Downtown man facing prosecution on charges that include embezzling $2.5 million while he worked for the Bank of New York Mellon Corp. was arrested this week in Arizona on counterfeiting charges, federal prosecutors said.
Assistant U.S. Attorney Tonya Goodman on Wednesday asked U.S. District Judge Terrence McVerry to revoke the bail of Joseph Graziano, 28.
A grand jury indicted Graziano in September on 14 counts of bank fraud, mail fraud and embezzlement. The bank fraud counts accuse him of taking out loans and using expensive cars he no longer owned as collateral.
The mail fraud counts include his ripping off eBay customers by accepting thousands of dollars for electronics and sending buyers empty boxes.
...
Former Bank Exec In Florida Pleads Guilty To Embezzling $10 Million - Uses Money To Help Customers
From the Florida Times-Union on 2/25/14:
Federal authorities have charged a former Jacksonville bank vice president with embezzling $10.5 million for himself and customers, oddly using the money to help them with loans and other banking favors, court records show.
Christopher David Boston, 40, entered into a plea agreement with prosecutors last week in which he admitted to the thefts from Fifth Third Bank over a 3½-year period, records show. The thefts occurred while Boston was working as a vice president and a private banker at the bank’s Mandarin branch at 9716 San Jose Blvd. just south of Old St. Augustine Road. A private banker handles high dollar accounts, of which Boston had dozens.
...
Read the whole story here.
Federal authorities have charged a former Jacksonville bank vice president with embezzling $10.5 million for himself and customers, oddly using the money to help them with loans and other banking favors, court records show.
Christopher David Boston, 40, entered into a plea agreement with prosecutors last week in which he admitted to the thefts from Fifth Third Bank over a 3½-year period, records show. The thefts occurred while Boston was working as a vice president and a private banker at the bank’s Mandarin branch at 9716 San Jose Blvd. just south of Old St. Augustine Road. A private banker handles high dollar accounts, of which Boston had dozens.
...
Read the whole story here.
2 Longtime Employees Suspected In $400K Bank Embezzlement Case In Western Massachusetts
From the Berkshire Eagle on 2/25/14:
Three months after the discovery of up to $400,000 in reserve funds missing from the Lenox National Bank, bank officials are still in the dark on the progress of an extensive FBI investigation.
Two long-serving employees who were terminated last November remain potential suspects in the federal case of embezzlement and fraud, but have not yet been charged or arrested. The joint investigation is being handled by the FBI's Springfield office and Lenox Police. Police Chief Stephen O'Brien said on Monday that he has been in contact with the bureau, but the status of the case remains unchanged since November. "This is still a very active investigation," he stated. Bank President Paul Merlino, an executive at Lenox National since 1975, told The Eagle that, following what he has called "a shocking betrayal by two trusted employees," tighter internal security procedures have been deployed.
...
Read the story here.
Three months after the discovery of up to $400,000 in reserve funds missing from the Lenox National Bank, bank officials are still in the dark on the progress of an extensive FBI investigation.
Two long-serving employees who were terminated last November remain potential suspects in the federal case of embezzlement and fraud, but have not yet been charged or arrested. The joint investigation is being handled by the FBI's Springfield office and Lenox Police. Police Chief Stephen O'Brien said on Monday that he has been in contact with the bureau, but the status of the case remains unchanged since November. "This is still a very active investigation," he stated. Bank President Paul Merlino, an executive at Lenox National since 1975, told The Eagle that, following what he has called "a shocking betrayal by two trusted employees," tighter internal security procedures have been deployed.
...
Read the story here.
2 Former Credit Union Employees In Illinois Plead Guilty To Embezzling $320K - Manager Used Money To Cover Theft From Municipality
From the FBI on 2/24/14:
Two former employees of Milledgeville Community Credit Union have pleaded guilty in separate federal cases to embezzling money from Milledgeville Community Credit Union in Milledgeville, Illinois. Kimberly Kent, 53, who was also a former treasurer of Wysox Township, pleaded guilty in federal court today, and Kelsey Selman, 37, pleaded guilty on January 28, 2014.
According to Kent’s written plea agreement, from October 2005 through February 2012, Kent embezzled approximately $219,600 from Milledgeville Community Credit Union, where she was the manager and responsible for supervising other employees. Kent was also responsible for her own cash drawer and for handling various transactions on accounts, including the deposit and withdrawal of funds to and from customers’ accounts. As stated in the plea agreement, to conceal her embezzlement, Kent created fictitious loans using the names of family members and fictitious certificates of deposit In 2009, Kent was elected treasurer of Wysox Township. Kent admitted that in August 2010, in her capacity as treasurer of Wysox Township, she used funds from Wysox Township’s account at Milledgeville Community Credit Union to cover her embezzlement. Kent used the money she embezzled for personal purposes. The deposits of the credit union were insured by the National Credit Union Administration Board.
In Selman’s written plea agreement, Selman admitted that from 2007 through February 2012, she embezzled approximately $100,975.74 from Milledgeville Community Credit Union. Selman worked as a teller for the credit union handling deposits and withdrawals on accounts, including her own credit union account. According to the plea agreement, Selman repeatedly took money over that period of time, using the credit union’s computer system to apply credits to her personal account that did not have a corresponding deposit. As a result, the credit union’s records falsely reflected that Selman’s cash drawer increased by an amount to offset the deposit into her account. After she credited the money into her account, Selman used the money she embezzled for personal purposes.
...
See the full FBI announcement here.
Two former employees of Milledgeville Community Credit Union have pleaded guilty in separate federal cases to embezzling money from Milledgeville Community Credit Union in Milledgeville, Illinois. Kimberly Kent, 53, who was also a former treasurer of Wysox Township, pleaded guilty in federal court today, and Kelsey Selman, 37, pleaded guilty on January 28, 2014.
According to Kent’s written plea agreement, from October 2005 through February 2012, Kent embezzled approximately $219,600 from Milledgeville Community Credit Union, where she was the manager and responsible for supervising other employees. Kent was also responsible for her own cash drawer and for handling various transactions on accounts, including the deposit and withdrawal of funds to and from customers’ accounts. As stated in the plea agreement, to conceal her embezzlement, Kent created fictitious loans using the names of family members and fictitious certificates of deposit In 2009, Kent was elected treasurer of Wysox Township. Kent admitted that in August 2010, in her capacity as treasurer of Wysox Township, she used funds from Wysox Township’s account at Milledgeville Community Credit Union to cover her embezzlement. Kent used the money she embezzled for personal purposes. The deposits of the credit union were insured by the National Credit Union Administration Board.
In Selman’s written plea agreement, Selman admitted that from 2007 through February 2012, she embezzled approximately $100,975.74 from Milledgeville Community Credit Union. Selman worked as a teller for the credit union handling deposits and withdrawals on accounts, including her own credit union account. According to the plea agreement, Selman repeatedly took money over that period of time, using the credit union’s computer system to apply credits to her personal account that did not have a corresponding deposit. As a result, the credit union’s records falsely reflected that Selman’s cash drawer increased by an amount to offset the deposit into her account. After she credited the money into her account, Selman used the money she embezzled for personal purposes.
...
See the full FBI announcement here.
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