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Tuesday, December 21, 2010

Former Loan Officer Admits Fraud in California

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




According to court documents, Rohs was a senior loan officer at a regional bank headquartered in Nevada City, California, until he was terminated in May 2009. In December 2008, February 2009, and March 2009, Rohs initiated three unauthorized fund transfers from the account of Customer A to the account of Customer B totaling $ 472,109.80. Also according to court documents, in September 2008 and April 2009, Rohs falsified Customer B’s loan documents by making materially false statements concerning the credit worthiness of Customer B and by making an unauthorized increase to the loan approved by the bank. The loss associated with Rohs’s criminal conduct totals $ 2,172,109.80.



Rohs is scheduled to be sentenced by Judge Karlton on March 1, 2011 at 9:15 A.M. 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. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.



United States Attorney Benjamin B. Wagner made the announcement. 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.

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