Former Billings, Montana bank president admits embezzling money

A former bank president on Thursday admitted federal charges that he stole about $17,000 from his bank.

“What did you do with the money?” Chief U.S. District Judge Richard Cebull asked William Guy Paul, once the president of the downtown Billings branch of Yellowstone Bank.
Paul replied he used it “for personal obligations.”
Paul, 44, pleaded guilty to one count of bank embezzlement for stealing $17,284. He reached a plea agreement and waived his right to an indictment. Prosecutors agreed not to bring other charges against Paul.
Assistant U.S. Attorney Ryan Archer said that in 2008 and 2009, Paul used his position to embezzle money for his personal use. In early June 2009, Yellowstone Bank discovered more than $7,000 had not been paid to a customer.
The customer sold real estate in February 2009 and overpaid $7,244 because of a timing difference with the loan payment, Archer said. On Feb. 11, 2009, Paul created a Yellowstone Bank cashier’s check payable to the customer for $7,244 but never gave it to the customer.
Instead, Paul used the money in May to make a payment on his personal credit card, deposited $2,000 of the check into his personal savings account and took some in cash.
The investigation also found Paul took more than $10,000 from the bank in 2008 and deposited the money into his personal bank account.
Paul was terminated from the bank in June because of his conduct, Archer said.
Paul told the judge he is working for Cellular Plus/Verizon Wireless in Billings.
Kelly Varnes, Paul’s attorney, said earlier that Paul has made full restitution to the bank.
Paul faces a maximum 30 years in prison and a maximum $1 million fine. Cebull set sentencing for May 26 and continued Paul’s release.