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Friday, December 17, 2010

Former Citizens Bank loan officer pleads guilty to embezzlement in Nevada

Melvin Rohs, 64, of Nevada City, pleaded guilty today in federal court to three counts of embezzlement by a bank employee and two counts of making a false statement in connection with a loan application.

This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Camil A. Skipper is prosecuting the case.

According to court documents, Rohs was a senior loan officer at a regional bank headquartered in Nevada City until he was terminated in May 2009. While Skipper declined to name the bank, Rohs was listed online as having been an assistant vice president and a senior commercial loan underwriter at Citizens Bank.

In December 2008, February 2009, and March 2009, Rohs initiated three unauthorized fund transfers from the account of one customer to the account of a second customer, totaling $472,109.80. Also according to court documents, in September 2008 and April 2009, Rohs falsified the loan documents of the second customer by making materially false statements concerning credit worthiness and by making an unauthorized increase to the loan approved by the bank. The loss associated with Rohs' criminal conduct totals $2,172,109.80.

Rohs is scheduled to be sentenced by Judge Karlton on March 1. The maximum statutory penalty Rohs faces is 30 years in prison on each count and a fine of $5 million. Rohs also will be ordered to make restitution to the victim of his offenses.

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