Tuesday, May 21, 2013
Poplar Bluff, Missouri bank employee charged with embezzlement
The FBI arrested a First Midwest Bank employee Friday on suspicion of embezzling nearly $400,000 from the institution.
Bank teller supervisor Leslie Ann Eastwood Kirby, 38, of Poplar Bluff turned herself in to authorities at approximately 8:30 a.m. at the Poplar Bluff Police Department.
She was taken by FBI agents to a federal holding facility, according to Poplar Bluff police chief Danny Whiteley.
Kirby is accused of taking the funds during a period of time ending March 28, according to a copy of an indictment filed with the Southeastern Division of the U.S. District Court's Eastern District.
"There is no evidence that any customer accounts were involved in the theft," First Midwest executive vice president Dale Dickerson said in a statement. "The bank, like all banks, has insurance to cover this type of incident."
The discrepancy was discovered during an internal audit, he said.
The missing funds were reported to police March 28, said Whiteley, who complimented the bank on its assistance and full cooperation with the investigation.
"We were contacted by officials for First Midwest Bank about a discrepancy in their vault. … We did a preliminary investigation and ascertained it was going to be an internal theft, then contacted the FBI in Cape Girardeau," Whiteley said.
A joint investigation between the two agencies led to Kirby's arrest, he said.
The indictment filed by federal prosecutor Morley Swingle said Kirby "willfully misapplied or embezzled the sum of approximately $397,000 of the funds … in that the defendant wrongfully and without authorization took money that came into her possession as the supervisor of the bank tellers and used it for her own benefit."
4 ex-Virginia bank execs face jury in $71 million embezzlement case
Federal court jurors in Norfolk are set to continue their deliberations in the trial of four former Bank of Commonwealth executives and a developer accused of conspiring to defraud the bank out of $71 million.
The Virginian-Pilot reports that the jury met briefly on Friday before breaking for the weekend. They resume deliberations Monday.
The defendants include the former bank president and CEO, two former vice presidents and a mortgage specialist. A developer is also a defendant.
A defense attorney called the case "the silliest bank fraud that ever existed."
A prosecutor countered that the fraud was tantamount to opening the vault and handing out millions.
Jurors' deliberations followed nine weeks of testimony.
Wednesday, May 15, 2013
Credit Union Embezzlement Up in 2012: Report
From CUTimes.com
The financial services industry was the most frequent victim and experienced the greatest losses from major embezzlement schemes last year, and nearly one in four involved credit unions, according to the 2012 Marquet Report on Embezzlement that was released Tuesday.
The report, which analyzed 528 major embezzlement cases in which at least $100,000 was misappropriated, found that 15% (about 80 cases) involved financial services firms but did not include insurance-related entities. Of that 15%, according to the report, 23% (about 18 cases) involved credit unions.
In 2011, only eight of the 58 financial services embezzlement cases involved credit unions.
“The financial institutions are always at the top of the list in terms of both the frequency of embezzlement cases and the volume of losses, and credit unions in particular seem to be hard hit,” said the report’s author Christopher Marquet, founder of Marquet International Ltd., a Wellesley, Mass., investigative, litigation support and due diligence firm.
Marquet’s report said the 2012 fraud cases involving credit unions probably resulted from “their relatively less-stringent control structure than commercial banks and other financial institutions.”
For example, the report highlights the case of Sharon Broadway of Toledo, who had been employed as the “manager, secretary, board member and sole employee” of the United Catholic Credit Union in Temperance, Mich.
She was able to siphon a total of $2.1 million for more than 20 years. Michigan prosecutors said Broadway managed to conceal her crimes through a complex money-laundering scheme involving forged checks and multiple aliases.
The credit union was shuttered last year, and Broadway was sentenced to 20 years in prison in January.
“This case illustrates that when you have what appears to be zero business controls, you are inviting trouble,” the report reads. “We note that the Broadway case in only one in six that exceeded 20 years in duration.”
In addition to Broadway’s case, Credit Union Times reported on four other multimillion dollar fraud and embezzlement cases in 2012 including:
Ignacio Morales, former CEO of the $7 million Borinquen FCU, pled guilty to embezzling $2.3 million and causing the Philadelphia financial institution to collapse.
Theresa “Teri” Portillo, former manager of the shuttered $2 million Women’s Southwest FCU, who pleaded guilty to stealing $3.4 million from the Dallas-based credit union.
William Liddle, former business lending vice president of AEA FCU in Yuma, Ariz., and his wife Rhonda Liddle, were found guilty of participating in a business loan kickback scheme. They were ordered to pay more than $25 million in restitution.
Michael Ross Franco, a former loan officer for My Community FCU in Midland, Texas, who pled guilty for defrauding the cooperative out of $4 million in an auto loan kickback scam.
Though tough economic conditions can drive people to steal, the Marquet Report’s data suggest that the primary motivating factor for perpetrators of major long-term embezzlement is to obtain and maintain a lifestyle far grander than what they would otherwise be able to attain.
“In many cases, the thefts actually began in good economic times, while they continued over many years,” the report said.
“We have also noted that during boom years, embezzlement can easily go unnoticed since the victim organization may be making healthy profits and the perpetrator begins by taking relatively small, regular amounts that fall under the radar,” the report said. “Many embezzlers accelerate their theft over time, leading to a higher probability of getting caught.”
Second to the financial services industry, government agencies and municipalities accounted for 11% of embezzlement cases last year and 9% involved other non-profit organizations. Health care, professional services, real estate and religious entities combined for 22% of embezzlement cases last year.
The report also found that 58% of embezzlement incidents involved women. Men embezzlers, however, stole nearly three times as much as women. More than 67% of embezzlers held a bookkeeping or finance position.
The most common embezzlement scheme involved forged or unauthorized company checks, while in nearly 33 % of the cases the embezzlers reportedly had a gambling issue, according to the report.
The financial services industry was the most frequent victim and experienced the greatest losses from major embezzlement schemes last year, and nearly one in four involved credit unions, according to the 2012 Marquet Report on Embezzlement that was released Tuesday.
The report, which analyzed 528 major embezzlement cases in which at least $100,000 was misappropriated, found that 15% (about 80 cases) involved financial services firms but did not include insurance-related entities. Of that 15%, according to the report, 23% (about 18 cases) involved credit unions.
In 2011, only eight of the 58 financial services embezzlement cases involved credit unions.
“The financial institutions are always at the top of the list in terms of both the frequency of embezzlement cases and the volume of losses, and credit unions in particular seem to be hard hit,” said the report’s author Christopher Marquet, founder of Marquet International Ltd., a Wellesley, Mass., investigative, litigation support and due diligence firm.
Marquet’s report said the 2012 fraud cases involving credit unions probably resulted from “their relatively less-stringent control structure than commercial banks and other financial institutions.”
For example, the report highlights the case of Sharon Broadway of Toledo, who had been employed as the “manager, secretary, board member and sole employee” of the United Catholic Credit Union in Temperance, Mich.
She was able to siphon a total of $2.1 million for more than 20 years. Michigan prosecutors said Broadway managed to conceal her crimes through a complex money-laundering scheme involving forged checks and multiple aliases.
The credit union was shuttered last year, and Broadway was sentenced to 20 years in prison in January.
“This case illustrates that when you have what appears to be zero business controls, you are inviting trouble,” the report reads. “We note that the Broadway case in only one in six that exceeded 20 years in duration.”
In addition to Broadway’s case, Credit Union Times reported on four other multimillion dollar fraud and embezzlement cases in 2012 including:
Ignacio Morales, former CEO of the $7 million Borinquen FCU, pled guilty to embezzling $2.3 million and causing the Philadelphia financial institution to collapse.
Theresa “Teri” Portillo, former manager of the shuttered $2 million Women’s Southwest FCU, who pleaded guilty to stealing $3.4 million from the Dallas-based credit union.
William Liddle, former business lending vice president of AEA FCU in Yuma, Ariz., and his wife Rhonda Liddle, were found guilty of participating in a business loan kickback scheme. They were ordered to pay more than $25 million in restitution.
Michael Ross Franco, a former loan officer for My Community FCU in Midland, Texas, who pled guilty for defrauding the cooperative out of $4 million in an auto loan kickback scam.
Though tough economic conditions can drive people to steal, the Marquet Report’s data suggest that the primary motivating factor for perpetrators of major long-term embezzlement is to obtain and maintain a lifestyle far grander than what they would otherwise be able to attain.
“In many cases, the thefts actually began in good economic times, while they continued over many years,” the report said.
“We have also noted that during boom years, embezzlement can easily go unnoticed since the victim organization may be making healthy profits and the perpetrator begins by taking relatively small, regular amounts that fall under the radar,” the report said. “Many embezzlers accelerate their theft over time, leading to a higher probability of getting caught.”
Second to the financial services industry, government agencies and municipalities accounted for 11% of embezzlement cases last year and 9% involved other non-profit organizations. Health care, professional services, real estate and religious entities combined for 22% of embezzlement cases last year.
The report also found that 58% of embezzlement incidents involved women. Men embezzlers, however, stole nearly three times as much as women. More than 67% of embezzlers held a bookkeeping or finance position.
The most common embezzlement scheme involved forged or unauthorized company checks, while in nearly 33 % of the cases the embezzlers reportedly had a gambling issue, according to the report.
Saturday, May 11, 2013
Bank employee charged with embezzling $135,700 in Kentucky
A Bank of Kentucky employee has been charged with embezzling more than $130,000, the U.S. Attorney's Office said Friday.In addition to bank embezzlement, Rebecca Hatfield, 34, was charged with making a false statement and 46 counts of making false entries in bank records, according to a news release. From December 2007 to August 2011, Hatfield took about $135,700 from the Bank of Kentucky, the news release said.Hatfield, of Columbus, Ind., worked at Bank of Kentucky in Florence.She is accused of making false entries into bank accounting records and lying to an FBI agent in denying that she embezzled money. She allegedly told an FBI agent another bank employee took the money, the news release said. If convicted, Hatfield could face up to 30 years in prison.
Friday, May 10, 2013
Former Citizens Bank Teller Sentenced for Embezzlement in Massachusetts
A former bank teller was sentenced today for committing bank fraud in connection with her embezzlement of $377,000 from Citizens Bank.
Maria DaSilva, 54, of Smithfield, Rhode Island, was sentenced by U.S. District Judge Richard Stearns to 27 months in prison, to be followed by 36 months of supervised release, and ordered to pay $377,926 in restitution. In January 2013, DaSilva pleaded guilty to bank fraud.
From February 2008 through January 2012, while she was working as a bank teller at the North Attleboro branch of Citizens Bank, DaSilva embezzled over $375,000 from the accounts of three elderly bank customers by forging withdrawal slips on various accounts they held.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today.
The case was investigated by the Lakeville Office of the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Jeremy Sternberg of Ortiz’s Economic Crimes Unit.
In addition, DaSilva was ordered to pay $377,926 in restitution.
In January 2013, DaSilva, a teller at the Citizens Bank branch at Stop & Shop, pleaded guilty to stealing the money from the accounts of three elderly bank customers from February 2008 to January 2012 by forging withdrawal slips on the various accounts they held, according to prosecutors.
During the course of the fraud, DaSilva stole from the account of one elderly victim to cover her misdeeds when a family member of a victim who died came to close the accounts to settle the estate, according to court records.
Assistant U.S. Attorney Jeremy Sternberg sought a 30-month sentence, noting that DaSilva stole from elderly victims she knew were vulnerable. He discounted her claims of financial and family hardships, noting the large amount of money she stole in a short period of time.
Saying the embezzlement was not a single occurrence, Sternberg wrote in an 11-page sentencing memorandum that "it involved the care, craft and cunning to execute the criminal activity on almost 100 separate occasions over a nearly 4-year period.
The victims were identified only by initials in court records and their losses were covered by Citizens Bank.
A federal public defender for DaSilva, Christopher Skinner of Boston, argued against incarcerating his client. He recommended a probationary period of five years with six months of home confinement on an electronic bracelet.
Skinner wrote in a 15-page sentencing memorandum that DaSilva was not motivated by greed, gambling debts or substance abuse problems. He said she incurred financial hardships after her husband was twice convicted of drunken driving and was fired from his job. In addition to being the sole bread winner in the family, DaSilva was also the sole caretaker of an elderly mother with dementia, Skinner said.
"She did not adopt a lavish life style or buy expensive cars or jewelry," Skinner wrote.
The public defender also noted that DaSilva, the mother of two sons who are about to enter the military, felt remorse over her crime, cooperated with bank investigators and was admitting to the bank fraud before prosecutors had to seek a grand jury indictment.
The case was investigated by the Lakeville office of the Federal Bureau of Investigation.
Bank Employee Indicted for Embezzlement of Nearly $250,000 in West Virginia
United States Attorney William J. Ihlenfeld, II, announced that Deborah D. Radcliff, age 41, of Weston, West Virginia, was named in an eight-count Indictment charging her with one count of embezzlement by a bank employee and seven counts of structuring.
According to the indictment, while serving as the branch manager of the Weston branch bank of Huntington National Bank from July 1, 2011 to November 5, 2012, Radcliff embezzled and misapplied $247,249.88 from depositors’ accounts and engaged in acts of structuring to cause the bank to fail to file a currency transaction report for currency transactions of $10,000 or more. To execute the scheme, Radcliff utilized her position as branch manager to issue or direct to be issued cashier’s checks from funds withdrawn from depositors’ accounts issued in the name of the depositor. Radcliff would take possession of the cashier’s check, forge the name of the depositor, and cash the checks for her own personal benefit. The ages of the alleged victims ranged from 56 to 90 years, with all but one alleged victim 64 years or older.
The indictment also seeks the forfeiture of a money judgment of the $247,249.88. If convicted, Radcliff faces up to 30 years’ imprisonment and a $1,000,000 fine on the embezzlement count and up to 10 years’ imprisonment and a $500,000 fine on each of the structuring counts. This case will be prosecuted by Assistant United States Attorney John C. Parr and was investigated by the Federal Bureau of Investigation.
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