Search This Blog

Friday, May 27, 2011

Former Citizens Bank loan officer sentenced to 33 months for embezzlement in Nevada


A former commercial loan officer with Citizens Bank was sentenced in federal court to nearly three years in prison after pleading guilty to embezzlement and other charges.

Melvin Rohs, 65, of Nevada City, had pleaded guilty to three counts of theft, embezzlement or misapplication of bank officer or employee and two counts of making a false statement in connection with a loan application or renewal. According to court documents, the loss associated with his criminal conduct totals more than $2 million.
Rohs was sentenced Tuesday to 33 months in prison, to be followed by five years of supervised release. He also was ordered to pay $533,976 in restitution.
Rohs was a senior loan officer and assistant vice president at Citizens Bank until he was terminated in May 2009. The bank is based in Nevada City, with offices throughout Nevada County and in Auburn.
In December 2008, February 2009, and March 2009, Rohs initiated three unauthorized fund transfers from the account of one customer — UDC Sierra Cove — to the account of a second customer — Gordon Hellwig, doing business as California Land Title Co. — totaling $472,110.
On the last occasion, Rohs transferred money the day after Hellwig's credit line became overdrawn, falsely noting on the request that UDC Sierra Cove was buying land from Hellwig.
There did not appear to be anything other than a customer-client relationship between Rohs and Hellwig. Hellwig told an IRS investigator he was unaware of the transactions, adding he contacted Rohs on several occasions because his bank balances were not accurate.
Citizens Bank was unable to recover the transferred funds from California Land Title and was forced to swallow the losses.
Rohs also falsified Hellwig's loan documents in September 2008 and April 2009 by making false statements concerning his credit worthiness and by making an unauthorized increase to the loan approved by the bank.

No comments:

Post a Comment