FORMER BANK EMPLOYEE SENTENCED FOR EMBEZZELMENT IN MICHIGAN

A FORMER SIGNATURE BANK EMPLOYEE HAS BEEN SENTENED TO 18 MONTHS IN FEDERAL PRISON FOR EMBEZZLING MORE THAN $200,000 FROM THE BANK.


ACCORDING TO A SIGNATURE BANK PRESS RELEASE, THE U.S. ATTORNEY'S OFFICE ISSUED FEDERAL CHARGES AGAINST JILL BUCHHOLZ OF PIGEON IN CONNECTION WITH THE INCIDENT.

SHE APPEARED IN FEDERAL DISTRICT COURT IN BAY CITY FOR SENTENCING THURSDAY. SHE WAS ALSO ORDERED TO PAY RESTITUION OF 186,000 DOLLARS.

BUCHHOLTZ REPORTEDLY ENTERED A GUILTY PLEA TO A SINGLE FELONY COUNT IN AN EARLIER APPEARANCE. THE INCIDENTS OCCURRED BETWEEN 2009 AND JULY 2011.WHEN BANK EXECUTIVES BEGAN INVESTIGATING THE SUSPECTED EMBEZZLEMENT.

THE RELEASE STATES THE SUSPECTED EMBEZZELMENT WAS IMMEDIATELY REPORTED TO LOCAL POLICE AND THE FBI. AN OUTSIDE CONSULTANT WAS HIRED TO HELP REVIEW BANK FILES. BUCHHOLZ HAS SINCE RESIGNED HER POSITION. NO OTHER BANK EMPLOYEES WERE INVOLVED.

OFFICIALS SAID BANK EXECUTIVES WERE INITIALLY MADE AWARE OF SOME VIOLATIONS OF BANK POLICIES AND PROCEDURES AND SOME IRREGULARITIES WITH LOANS ORIGINATED BY BUCCHOLZ. ACCOUNTS OF APPROXIMATELY 20 BANK CUSTOMERS WERE THE SUBJECT OF FRAUDULENT ACTIVITIES. THOSE CUSTOMERS WERE ALL NOTIFIED AND THE BANK MET WITH EACH TO INFORM THEM OF THE SITUATION. BANK PRESIDENT AND CEO ROBERT THOMAS TOLD WLEW THE BANK IS PROTECTED BY SPECIAL INSURANCE AGAINST FRAUD AND DISHONESTY BY EMPLOYEES.

Court records state Buchholz, between 2009 and 2011, used her position at Signature Bank to embezzle at least $306,000.




“We are disheartened that a former employee abused the trust our customers and coworkers placed in her every day,” said President and CEO Robert Thomas in a press release. “Unfortunately, fraud is more common today because of economic conditions and banks are not immune, despite the high level of controls we have. With the help of an outside forensic accountant, we have evaluated our internal processes and procedures to ensure we have the proper safeguards in place.”



Buchholz pleaded guilty to one felony count of theft/embezzlement/misapplication by a bank officer. That crime carries a maximum sentence of 30 years in prison and a $1 million fine.



Bank executives were initially made aware of some violations of bank policies and procedures and some irregularities with loans originated by Buchholz. No other bank employees were involved.



As the internal investigation proceeded, the bank reports that it met with each affected customer to inform them of the situation.



“We took swift action to stop the fraudulent activity and appreciate all the hard work law enforcement has put into this investigation to ensure that this individual is held accountable for her actions,” Thomas said. “Our customers are very loyal and understand that we are a federally insured depository institution. Any financial risk is to the bank, not to our customers.”



Signature Bank carries special insurance to protect it against fraud and dishonesty by employees. The bank employs more than 100 people at eight branches, with headquarters in Bad Axe.
No Signature Bank deposit customer incurred a financial loss as a result of a recent criminal activity by a former employee, bank officials announced Monday.




The accounts of about 20 Signature Bank customers were the subject of the fraudulent activity and all customers involved have been notified of the issue, the bank announced. It said no loan customers have been required to pay any amounts contrary to their loan agreements or pay any amounts improperly credited as a result of the fraud.



Former loan representative Jill M. Buchholz of Pigeon was sentenced last week to 18 months in federal prison and ordered to pay $186,000 in restitution to the bank. Federal Judge Thomas L. Ludington sentenced her in U.S. District Court in Bay City.
No Signature Bank deposit customer incurred a financial loss as a result of a recent criminal activity by a former employee, bank officials announced Monday.




The accounts of about 20 Signature Bank customers were the subject of the fraudulent activity and all customers involved have been notified of the issue, the bank announced. It said no loan customers have been required to pay any amounts contrary to their loan agreements or pay any amounts improperly credited as a result of the fraud.



Former loan representative Jill M. Buchholz of Pigeon was sentenced last week to 18 months in federal prison and ordered to pay $186,000 in restitution to the bank. Federal Judge Thomas L. Ludington sentenced her in U.S. District Court in Bay City.