A former Capital Bank head teller entered a guilty plea to stealing more than $60,000 from her place of employment over a four-year period.
Kristy Hodges, 31, of Cunningham, Tenn., was charged with theft and 43 counts of false bookkeeping.
In September of 2012, the 19th Judicial District Attorney General requested TBI investigate allegations of embezzlement by Hodges, who was head teller at Capital Bank located at 25 Jefferson St. Hodges allegedly stole approximately $64,000 between 2008 and 2012, according to a previous report.
On Jan. 3, Hodges entered an open guilty plea to theft over $10,000. The 43 charges of false bookkeeping were dismissed in settlement.
She is scheduled to be sentenced by Judge John H. Gasaway on Feb. 12.
Saturday, January 25, 2014
Embezzlement charges filed against Lehighton woman
The U.S. Attorney's Office for the Middle District of Pennsylvania announced Wednesday that in U.S. District Court in Harrisburg a criminal information has been filed against Shelly Ann Kocher, 42, of Lehighton.
She is accused of embezzling about $316,324 from customer accounts while she worked as a customer service supervisor at Jim Thorpe National Bank in Jim Thorpe.
A plea agreement was also filed indicating that Kocher intends to plead guilty to the charge when she appears in federal court for her arraignment.
According to U.S. Attorney Peter J. Smith, Kocher was employed by Jim Thorpe National Bank from 1999 until May 2013. Kocher allegedly embezzled the funds by making unauthorized withdrawals from customers' CD and savings accounts between April 2010 and April 2013.
When it was discovered, the bank reimbursed the victims for their losses.
If convicted, Kocher faces up to 30 years imprisonment, $1 million in fines, and mandatory restitution.
The case was investigated by the Scranton office of the FBI and is assigned to Senior Litigation Counsel Bruce Brandler.
The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that on Tuesday in U.S. District Court in Harrisburg, a criminal information has been filed against Shelly Ann Kocher, 42, Lehighton, Pennsylvania, for embezzling approximately $316,324 from customer accounts while she worked as a customer service supervisor at Jim Thorpe National Bank in Jim Thorpe, Pennsylvania. A plea agreement was also filed indicating that Kocher intends to plead guilty to the charge when she appears in federal court for her arraignment.According to U.S. Attorney Peter J. Smith, Kocher was employed by Jim Thorpe National Bank from 1999 until May 2013. Kocher allegedly embezzled the funds by making unauthorized withdrawals from customers’ CD and savings accounts between April 2010 and April 2013. Upon discovery of the activity, the bank reimbursed the victims for their losses.
If convicted, Kocher faces up to 30 years’ imprisonment, $1 million in fines, and mandatory restitution.
The case was investigated by the Scranton Resident Agency of the FBI and is assigned to Senior Litigation Counsel Bruce Brandler.
Indictments and criminal informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 30 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the judge is also required to consider and weigh a number of factors, including the nature, circumstances, and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant’s educational, vocational, and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
She is accused of embezzling about $316,324 from customer accounts while she worked as a customer service supervisor at Jim Thorpe National Bank in Jim Thorpe.
A plea agreement was also filed indicating that Kocher intends to plead guilty to the charge when she appears in federal court for her arraignment.
According to U.S. Attorney Peter J. Smith, Kocher was employed by Jim Thorpe National Bank from 1999 until May 2013. Kocher allegedly embezzled the funds by making unauthorized withdrawals from customers' CD and savings accounts between April 2010 and April 2013.
When it was discovered, the bank reimbursed the victims for their losses.
If convicted, Kocher faces up to 30 years imprisonment, $1 million in fines, and mandatory restitution.
The case was investigated by the Scranton office of the FBI and is assigned to Senior Litigation Counsel Bruce Brandler.
The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that on Tuesday in U.S. District Court in Harrisburg, a criminal information has been filed against Shelly Ann Kocher, 42, Lehighton, Pennsylvania, for embezzling approximately $316,324 from customer accounts while she worked as a customer service supervisor at Jim Thorpe National Bank in Jim Thorpe, Pennsylvania. A plea agreement was also filed indicating that Kocher intends to plead guilty to the charge when she appears in federal court for her arraignment.According to U.S. Attorney Peter J. Smith, Kocher was employed by Jim Thorpe National Bank from 1999 until May 2013. Kocher allegedly embezzled the funds by making unauthorized withdrawals from customers’ CD and savings accounts between April 2010 and April 2013. Upon discovery of the activity, the bank reimbursed the victims for their losses.
If convicted, Kocher faces up to 30 years’ imprisonment, $1 million in fines, and mandatory restitution.
The case was investigated by the Scranton Resident Agency of the FBI and is assigned to Senior Litigation Counsel Bruce Brandler.
Indictments and criminal informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 30 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the judge is also required to consider and weigh a number of factors, including the nature, circumstances, and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant’s educational, vocational, and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Saturday, January 18, 2014
CU Manager/Treasurer Faces Embezzlement Charge
William J. Memmer, a former assistant manager and treasurer at the failed G.I.C. Federal Credit Union in Euclid, Ohio, was charged last week with embezzling nearly $2 million and falsifying records, according to the U.S. Attorney's Office.
The NCUA liquidated the 3,476-member, $15.5 million cooperative on Dec. 13, 2012, after declaring it to be insolvent.
According to a material loss review released Dec. 2, 2013, by the NCUA's Office of Inspector General, the credit union's failure was caused by fraud and resulted in an estimated loss of $7 million to the National Credit Union Share Insurance Fund.
Memmer, 63, a resident of Lakewood, Ohio, is accused of using blank G.I.C. FCU checks to pay off $1,843,007 in debt on 15 personal credit card accounts and falsifying the credit union's quarterly financial reports to hide the theft, beginning as early as 2003. He also allegedly falsified confirmations of G.I.C. FCU's assets by as much as $5.7 million, according to court documents.
“Memmer took advantage of his high-level position of trust by falsifying records and funneling money,” said Stephen Anthony, special agent in charge of the FBI's Cleveland office. “The FBI will continue efforts to see that fraudsters like Memmer are brought to justice.”
Memmer is charged with one count of embezzlement and one count of making false entries. He was charged in a criminal information, which is often filed when a suspect cooperates with prosecutors and intends to plead guilty.
“When those who hold trusted positions in financial institutions and those they work with betray the trust of the depositors, as is alleged in this matter, federal law enforcement will take all appropriate action to hold them accountable,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
According to the OIG report, the NCUA could have done more to prevent G.I.C.'s failure.
The report suggested the agency should go to Congress, if needed, to get additional authority to access credit union audit papers.
According to the report, several factors allowed the fraud to go undetected, including senior management displaying “questionable” integrity such as overstating assets by $8.1 million, the supervisory committee failing to complete audits for three consecutive fiscal years and the board of directors exhibiting lack of supervision and failing to exercise responsibilities.
To prevent similar issues in the future, the OIG recommended that the NCUA “reinforce documentation, communication, and follow up procedures required for incomplete or otherwise unacceptable external auditor reports to ensure appropriate visibility for follow up and escalation of administrative remedies if the issues are not resolved.”
NCUA management responded that corrective action had already been taken through the implementation of Chapter 5 of the National Supervision Policy Manual dealing with audits, recordkeeping and fraud, according to the OIG report. The OIG recommended requiring examiners to get audit reports directly from independent auditors rather than through credit union management. NCUA management said it “does not believe the auditor has a legal obligation to share their audit report with NCUA as a condition of share insurance.”
The NCUA liquidated the 3,476-member, $15.5 million cooperative on Dec. 13, 2012, after declaring it to be insolvent.
According to a material loss review released Dec. 2, 2013, by the NCUA's Office of Inspector General, the credit union's failure was caused by fraud and resulted in an estimated loss of $7 million to the National Credit Union Share Insurance Fund.
Memmer, 63, a resident of Lakewood, Ohio, is accused of using blank G.I.C. FCU checks to pay off $1,843,007 in debt on 15 personal credit card accounts and falsifying the credit union's quarterly financial reports to hide the theft, beginning as early as 2003. He also allegedly falsified confirmations of G.I.C. FCU's assets by as much as $5.7 million, according to court documents.
“Memmer took advantage of his high-level position of trust by falsifying records and funneling money,” said Stephen Anthony, special agent in charge of the FBI's Cleveland office. “The FBI will continue efforts to see that fraudsters like Memmer are brought to justice.”
Memmer is charged with one count of embezzlement and one count of making false entries. He was charged in a criminal information, which is often filed when a suspect cooperates with prosecutors and intends to plead guilty.
“When those who hold trusted positions in financial institutions and those they work with betray the trust of the depositors, as is alleged in this matter, federal law enforcement will take all appropriate action to hold them accountable,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
According to the OIG report, the NCUA could have done more to prevent G.I.C.'s failure.
The report suggested the agency should go to Congress, if needed, to get additional authority to access credit union audit papers.
According to the report, several factors allowed the fraud to go undetected, including senior management displaying “questionable” integrity such as overstating assets by $8.1 million, the supervisory committee failing to complete audits for three consecutive fiscal years and the board of directors exhibiting lack of supervision and failing to exercise responsibilities.
To prevent similar issues in the future, the OIG recommended that the NCUA “reinforce documentation, communication, and follow up procedures required for incomplete or otherwise unacceptable external auditor reports to ensure appropriate visibility for follow up and escalation of administrative remedies if the issues are not resolved.”
NCUA management responded that corrective action had already been taken through the implementation of Chapter 5 of the National Supervision Policy Manual dealing with audits, recordkeeping and fraud, according to the OIG report. The OIG recommended requiring examiners to get audit reports directly from independent auditors rather than through credit union management. NCUA management said it “does not believe the auditor has a legal obligation to share their audit report with NCUA as a condition of share insurance.”
Spirikaitis Charges Reveal Six-Person Fraud Ring
Former Taupa Lithuanian Credit Union CEO Alex R. Spirikaitis was charged Wednesday with conspiracy for his role in defrauding the credit union out of $15 million.
Spirikiaitis used some of those stolen funds to build a $1.6 million home, pay for a luxury suite at Cleveland Browns games, buy nine vehicles and amass an arsenal of semi-automatic weapons and more than 10,000 rounds of ammunition he stored at the cooperative’s Cleveland office, according to federal prosecutors.
Spirikaitis, 51, was charged with one count of conspiracy to commit bank fraud. His arraignment in U.S. District Court has not yet been scheduled.
He personally embezzled about $4.2 million from Taupa Lithuanian CU between 2001 and 2013, federal prosecutors charge.
“This defendant stole millions of dollars from credit union members who entrusted him,” Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio said. “He lived a life of luxury based on stolen money and now he must own up for those actions.”
Spirikaitis also conspired with six people – two that have been charged – and four others who were identified only by their initials, according to a prepared statement from federal prosecutors. Their alleged embezzlement contributed to the total $15 million fraud.
Michael Ruksenas, who worked at Taupa Lithuanian as a teller, pleaded guilty in U.S. District Court in Cleveland in December to conspiring to embezzle more than $481,000 from the failed credit union.
As part of a plea deal, Ruksenas agreed to cooperate with and testify for federal prosecutors.
On Monday, federal prosecutors charged Taupa Lithuanian member John Struna, 51, of the Cleveland suburb of Concord Township, with one count of conspiracy to commit theft or embezzlement from a credit union.
Struna, who had personal and corporate accounts, conspired with Spirikaitis to overdraw Struna’s accounts by $2.5 million, according to the federal prosecutors.
In their prepared statement, federal prosecutors also described other people only by their initials who allegedly conspired with Spirkaitis to embezzle funds. The former CEO allegedly transferred funds to cover overdrafts for others who worked at Taupa Lithuanian or had accounts there.
They include two employees and two members, according to federal prosecutors:
- A.B., who worked at Taupa between 1991 and 2013 and withdrew more than $1.3 million, for which there were insufficient funds;
- G.C., who withdrew approximately $1 million from accounts for which there were insufficient funds between 2001 and 2013;
- P.B., who withdrew approximately $1 million from accounts for which there were insufficient funds between 2001 and 2013; and,
- V.A., who worked at Taupa Lithuanian as a bookkeeper, and withdrew approximately $120,000 from accounts for which there were insufficient funds.
The NCUA and the Ohio Department of Commerce took possession of Taupa Lithuanian last July and placed it into receivership due to its insolvency. Taupa had about 1,150 members and assets of approximately $24 million.
John Struna, 51, was charged in a criminal information with one count of conspiracy to commit theft or embezzlement from a credit union.
"This defendant is part of a group that took advantage of the trust of hundreds of people for their own personal gain," Dettelbach said. "These criminal charges should serve as a reminder that there is no such things as free money."
"John Struna willfully overdrew his credit union accounts to the tune of $2.5 million through his relationship with a corrupt executive at the credit union," Anthony said. "The FBI will continue efforts to make sure all the individuals responsible for the collapse of the Taupa Lithuanian Credit Union are held accountable."
The National Credit Union Administration and the Ohio Department of Commerce took possession of Taupa last July and placed it into receivership due to its insolvency.
Taupa had about 1,150 members and assets of approximately $24 million, according to court records.
Credit union CEO Alex Spirikaitis and former teller Michael Ruksenas have previously been charged for their roles in conspiracies related to defrauding the credit union.
Struna maintained both personal and corporate accounts at Taupa dating back to 1995. He began a conspiracy with Spirikaitisin 2007, during which time Struna overdrew his accounts by approximately $2.5 million, according to the information.
Struna called Spirikaitis about twice a month and requested Spirikaitis' approval to withdraw additional funds. Spirikaitis made multiple transfers from Taupa's internal accounts to cover the overdrafts, according to the information.
Spirikaitis caused Taupa to make approximately 38 false and fraudulent wire transfers into Struna's personal accounts between 2007 and 2013. During that time, Struna repaid only approximately $15,000, according to the information.
In 2011, Struna requested and received $112,105 from Spirikaitis for the purchase of a condominium located in Ft. Myers, Florida. In 2012, he requested and received approximately $100,000 for an investment opportunity. At no time did Struna submit any credit applications or loan documents, according to the information.
As a result of the conspiracy, Taupa and the NCUA suffered a loss of approximately $2.5 million, according to the information.
This case is being prosecuted by Special Assistant United States Attorney Derek Kleinmann and Assistant United States Attorney Robert J. Patton. The case was investigated by the Federal Bureau of Investigation.
Sunday, January 12, 2014
Residents in Ailey, GA hoping for closure in embezzlement case
The small city of Ailey, Georgia has a population of 543, according to the U.S. Census Bureau. For many years, it only had two banks -- one in Ailey and one in Mount Vernon.
In 2012, residents were shocked to learn Aubrey Lee Price, the director of Montgomery Bank and Trust in Ailey, was accused of embezzling more than $20 million.
"We were all very upset about the situation, of course something like that happening in your backyard, literally your backyard," said Randy Rodgers, Superintendent of Montgomery County Schools.
Rodgers lives on the same street where the bank was located.
"I remember the day that the FDIC arrived, my wife and I actually sat chairs in the backyard and watched the guys coming and going," Rodgers said.
The FDIC shut the bank down.
Meanwhile, FBI agents spent two years searching for Price, whom authorities say had written letters admitting he had lost large sums of investors' money -- along with his plans to commit suicide.
A judge presumed Price dead, but the FBI did not. Last week, he was arrested after a traffic stop in Brunswick, GA.
"The last few days my email has been lighting up," said Rodgers.
Price's capture is now the talk of the town. Rodgers said he used to bank with Montgomery Bank and Trust, but has since closed his account.
"It was sad to see that many jobs lost. In fact, we are a very very small community, very little industrial development, and any jobs being lost are important," added Rodgers.
A few days after the bank closed, Ameris Bank opened at the same location, but that too closed last November.
Many of the residents who live in Ailey say they work in larger neighboring cities like Vidalia, which is only 10 miles away. Most do their banking there.
"I think there are a lot of people who would like to to see some closure to this," said Rodgers.
Price is expected to appear in Federal Court in Savannah for a bond heading Monday morning.
In 2012, residents were shocked to learn Aubrey Lee Price, the director of Montgomery Bank and Trust in Ailey, was accused of embezzling more than $20 million.
"We were all very upset about the situation, of course something like that happening in your backyard, literally your backyard," said Randy Rodgers, Superintendent of Montgomery County Schools.
Rodgers lives on the same street where the bank was located.
"I remember the day that the FDIC arrived, my wife and I actually sat chairs in the backyard and watched the guys coming and going," Rodgers said.
The FDIC shut the bank down.
Meanwhile, FBI agents spent two years searching for Price, whom authorities say had written letters admitting he had lost large sums of investors' money -- along with his plans to commit suicide.
A judge presumed Price dead, but the FBI did not. Last week, he was arrested after a traffic stop in Brunswick, GA.
"The last few days my email has been lighting up," said Rodgers.
Price's capture is now the talk of the town. Rodgers said he used to bank with Montgomery Bank and Trust, but has since closed his account.
"It was sad to see that many jobs lost. In fact, we are a very very small community, very little industrial development, and any jobs being lost are important," added Rodgers.
A few days after the bank closed, Ameris Bank opened at the same location, but that too closed last November.
Many of the residents who live in Ailey say they work in larger neighboring cities like Vidalia, which is only 10 miles away. Most do their banking there.
"I think there are a lot of people who would like to to see some closure to this," said Rodgers.
Price is expected to appear in Federal Court in Savannah for a bond heading Monday morning.
Final defendant in embezzlement from southwest Kansas bank pleads guilty
A fourth defendant in the embezzlement of up to $84,000 from a southwest Kansas bank has pleaded guilty.
The U.S. Attorney's office says 33-year-old Hattie Wiginton pleaded guilty Monday to one count of theft from Western State Bank in Ulysses. She faces up to 10 years in federal prison at her sentencing March 24.
Three of Wiginton's former co-workers at the bank pleaded guilty earlier. Ashley Cravens, Linda Wise and Amber Gutierrez, all of Ulysses, will be sentenced in February.
Prosecutors said the defendants began stealing in 2008 by making deposits into each other's accounts, hiding the shortage by lying about the balance in the bank's vault.
In July 2010, three of the women staged a holdup of the bank to cover up the shortage of cash in the bank.
The U.S. Attorney's office says 33-year-old Hattie Wiginton pleaded guilty Monday to one count of theft from Western State Bank in Ulysses. She faces up to 10 years in federal prison at her sentencing March 24.
Three of Wiginton's former co-workers at the bank pleaded guilty earlier. Ashley Cravens, Linda Wise and Amber Gutierrez, all of Ulysses, will be sentenced in February.
Prosecutors said the defendants began stealing in 2008 by making deposits into each other's accounts, hiding the shortage by lying about the balance in the bank's vault.
In July 2010, three of the women staged a holdup of the bank to cover up the shortage of cash in the bank.
Former Lynchburg credit union teller pleads guilty to embezzlement
A former head teller of the defunct Lynrocten Federal Credit Union pleaded guilty in U.S. District Court on Tuesday to an embezzlement charge prosecutors say contributed to the financial institution’s collapse in the spring of 2013.
Teresa Wieringo Humphries, 58, of Madison Heights, admitted to embezzling more than $1 million from the Lynchburg-based credit union, which closed in May, U.S. Attorney Timothy Heaphy said in a news release.
Humphries had created fraudulent loans and perpetrated check-kiting schemes for more than a decade, Heaphy said. While Humphries stole more than $1 million, he said the total loss to the credit union was more than $7 million.
Humphries participated in a “massive fraud scheme” by falsifying loan documents to steal from her employer, Heaphy said.
“Her brazen and persistent acts of fraud violated the trust placed in her by the Lynrocten Credit Union and its customers,” he said in the release.
The U.S. Attorney’s Office release said Humphries worked with the credit union’s manager in the fraud, which contributed to the ultimate liquidation of the financial institution, located in a small office off Concord Turnpike. The release did not name the manager.
According to search warrant affidavits, Humphries told investigators in interviews in April and May that she and former manager Linda Newcomb had taken loans out in members’ names and deposited the funds in family members’ accounts for a decade.
Humphries later retracted the statement. Newcomb has denied all knowledge of the scheme.
Heaphy’s spokesman, Brian McGinn, said Humphries is the only person who has been charged in connection with the case. He declined to comment further.
Humphries served as the head teller at the Lynrocten Credit Union in Lynchburg since the mid-1980s, according to evidence presented in court. Beginning in 2000 and continuing until the credit union’s liquidation last year, Humphries and the manager carried out several schemes to embezzle and steal funds from the credit union’s deposits through unauthorized and fraudulent origination of loans in the names of credit union members, prosecutors said.
Humphries and the manager also used a check-kiting scheme, which involves passing fraudulent checks with the expectation that enough money will be deposited before the check is cashed, to obtain additional monies and conceal and facilitate the fraudulent scheme.
The money created through the loan and check-kiting schemes was funneled to the Lynrocten Credit Union accounts of Humphries, the manager and their family members. Between 2007 and the credit union’s failure, prosecutors say Humphries personally stole about $3,000 to $4,000 per month that was deposited into the accounts belonging to family members.
The FBI, the U.S. Secret Service and Lynchburg Police Department conducted the investigation, the release said.
At sentencing, Humphries faces a possible penalty of up to 30 years in prison and a fine of up to $1 million.
Teresa Wieringo Humphries, 58, of Madison Heights, admitted to embezzling more than $1 million from the Lynchburg-based credit union, which closed in May, U.S. Attorney Timothy Heaphy said in a news release.
Humphries had created fraudulent loans and perpetrated check-kiting schemes for more than a decade, Heaphy said. While Humphries stole more than $1 million, he said the total loss to the credit union was more than $7 million.
Humphries participated in a “massive fraud scheme” by falsifying loan documents to steal from her employer, Heaphy said.
“Her brazen and persistent acts of fraud violated the trust placed in her by the Lynrocten Credit Union and its customers,” he said in the release.
The U.S. Attorney’s Office release said Humphries worked with the credit union’s manager in the fraud, which contributed to the ultimate liquidation of the financial institution, located in a small office off Concord Turnpike. The release did not name the manager.
According to search warrant affidavits, Humphries told investigators in interviews in April and May that she and former manager Linda Newcomb had taken loans out in members’ names and deposited the funds in family members’ accounts for a decade.
Humphries later retracted the statement. Newcomb has denied all knowledge of the scheme.
Heaphy’s spokesman, Brian McGinn, said Humphries is the only person who has been charged in connection with the case. He declined to comment further.
Humphries served as the head teller at the Lynrocten Credit Union in Lynchburg since the mid-1980s, according to evidence presented in court. Beginning in 2000 and continuing until the credit union’s liquidation last year, Humphries and the manager carried out several schemes to embezzle and steal funds from the credit union’s deposits through unauthorized and fraudulent origination of loans in the names of credit union members, prosecutors said.
Humphries and the manager also used a check-kiting scheme, which involves passing fraudulent checks with the expectation that enough money will be deposited before the check is cashed, to obtain additional monies and conceal and facilitate the fraudulent scheme.
The money created through the loan and check-kiting schemes was funneled to the Lynrocten Credit Union accounts of Humphries, the manager and their family members. Between 2007 and the credit union’s failure, prosecutors say Humphries personally stole about $3,000 to $4,000 per month that was deposited into the accounts belonging to family members.
The FBI, the U.S. Secret Service and Lynchburg Police Department conducted the investigation, the release said.
At sentencing, Humphries faces a possible penalty of up to 30 years in prison and a fine of up to $1 million.
Former head teller pleads guilty to bank embezzlement in Tennessee
Kaley Gregory, 29, of Gallatin, Tennessee, pleaded guilty Jan. 3 to one count of bank embezzlement, said David Rivera, United States Attorney for the Middle District of Tennessee.
At the plea hearing, Gregory admitted that from 2009 until May 2013, while employed as the head teller of the Gallatin branch of Volunteer State Bank, she embezzled more than $264,000 from the bank and converted this cash to her own use. Gregory also admitted making false entries into the bank’s computer system in order to conceal her embezzlement and to manipulating bank audits to conceal the shortfall of cash resulting from her scheme. Gregory further acknowledged using a relative’s bank account to disguise the source of embezzled cash which she ultimately deposited into her own personal bank account and used for retail purchases, travel and paying bills.
After accepting Gregory’s plea, U.S. District Judge Todd J. Campbell scheduled a sentencing hearing for March 21. Gregory faces a maximum sentence of 30 years in prison and a maximum fine of up to $1,000,000. In addition, Gregory will forfeit the proceeds of her embezzlement and any property derived from these proceeds.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
At the plea hearing, Gregory admitted that from 2009 until May 2013, while employed as the head teller of the Gallatin branch of Volunteer State Bank, she embezzled more than $264,000 from the bank and converted this cash to her own use. Gregory also admitted making false entries into the bank’s computer system in order to conceal her embezzlement and to manipulating bank audits to conceal the shortfall of cash resulting from her scheme. Gregory further acknowledged using a relative’s bank account to disguise the source of embezzled cash which she ultimately deposited into her own personal bank account and used for retail purchases, travel and paying bills.
After accepting Gregory’s plea, U.S. District Judge Todd J. Campbell scheduled a sentencing hearing for March 21. Gregory faces a maximum sentence of 30 years in prison and a maximum fine of up to $1,000,000. In addition, Gregory will forfeit the proceeds of her embezzlement and any property derived from these proceeds.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Wednesday, January 1, 2014
Missing Georgia banker accused of embezzlement arrested in Brunswick traffic stop
A Georgia banker accused of embezzling more than $20 million who has been the subject of an FBI search since he went missing last summer was arrested Tuesday during a random traffic stop in Brunswick.
Aubrey Lee Price, 47, originally from Lyons, was indicted in July 2012 by a federal grand jury sitting in the Southern District of Georgia on a charge that he defrauded the Montgomery Bank & Trust in Ailey of more $21 million. He was arrested Tuesday by members of the Glynn County Sheriff’s Office conducting a random vehicle and traffic stop, said James Durham, first assistant United States attorney for the Southern District of Georgia.
According to the allegations in the indictment against Price, in 2010 an investment group he controlled invested approximately $10 million in the failing Montgomery Bank & Trust. Price was then made a director of MB&T and put in charge of investing the bank’s capital.
Over the next 18 months, Price is alleged to have stolen, misappropriated and embezzled more than $21 million from MB&T, Durham said. To cover up his fraud, Price provided MB&T officials with bogus account statements, which falsely indicated the bank’s capital was safely held in an account at a financial services firm, Durham said.
Before Tuesday’s arrest, Price was last seen in June 2012 boarding a ferry terminal in Key West, Fla., bound for Fort Myers. He disappeared after writing a letter to acquaintances and regulators stating that he had lost a large amount of money, and that he planned to take his own life. On Dec. 31, 2012 — exactly one year before his Tuesday arrest — a circuit court judge in Florida agreed to order a presumptive death certificate for Price at the request of his wife.
The FBI has been actively searching for Price since the date of his disappearance. He was arrested by Glynn County deputies on Interstate 95 in Brunswick. When deputies learned of Price’s true identity, he was taken into custody, Durham said.
Price will make his initial appearance on the federal arrest warrants on Jan. 2 at the federal courthouse in Brunswick.
In the Southern District of Georgia, Price is charged with one count of bank fraud, which carries a maximum sentence of 30 years in prison and a fine of up to $1 million. He faces additional charges in New York.
The indictment of Price arises out of an ongoing and joint investigation by FDIC-OIG special agent John Crawford, Federal Reserve Board OIG special agent Amy Whitcomb and FBI special Agent Ed Sutcliff. First Assistant United States Attorney James Durham and Assistant United States Attorney Brian Rafferty are prosecuting the case for the United States.
Aubrey Lee Price, 47, originally from Lyons, was indicted in July 2012 by a federal grand jury sitting in the Southern District of Georgia on a charge that he defrauded the Montgomery Bank & Trust in Ailey of more $21 million. He was arrested Tuesday by members of the Glynn County Sheriff’s Office conducting a random vehicle and traffic stop, said James Durham, first assistant United States attorney for the Southern District of Georgia.
According to the allegations in the indictment against Price, in 2010 an investment group he controlled invested approximately $10 million in the failing Montgomery Bank & Trust. Price was then made a director of MB&T and put in charge of investing the bank’s capital.
Over the next 18 months, Price is alleged to have stolen, misappropriated and embezzled more than $21 million from MB&T, Durham said. To cover up his fraud, Price provided MB&T officials with bogus account statements, which falsely indicated the bank’s capital was safely held in an account at a financial services firm, Durham said.
Before Tuesday’s arrest, Price was last seen in June 2012 boarding a ferry terminal in Key West, Fla., bound for Fort Myers. He disappeared after writing a letter to acquaintances and regulators stating that he had lost a large amount of money, and that he planned to take his own life. On Dec. 31, 2012 — exactly one year before his Tuesday arrest — a circuit court judge in Florida agreed to order a presumptive death certificate for Price at the request of his wife.
The FBI has been actively searching for Price since the date of his disappearance. He was arrested by Glynn County deputies on Interstate 95 in Brunswick. When deputies learned of Price’s true identity, he was taken into custody, Durham said.
Price will make his initial appearance on the federal arrest warrants on Jan. 2 at the federal courthouse in Brunswick.
In the Southern District of Georgia, Price is charged with one count of bank fraud, which carries a maximum sentence of 30 years in prison and a fine of up to $1 million. He faces additional charges in New York.
The indictment of Price arises out of an ongoing and joint investigation by FDIC-OIG special agent John Crawford, Federal Reserve Board OIG special agent Amy Whitcomb and FBI special Agent Ed Sutcliff. First Assistant United States Attorney James Durham and Assistant United States Attorney Brian Rafferty are prosecuting the case for the United States.
Subscribe to:
Posts (Atom)
Posts
