Three months after the discovery of up to $400,000 in reserve funds missing from the Lenox National Bank, bank officials are still in the dark on the progress of an extensive FBI investigation.
Two long-serving employees who were terminated last November remain potential suspects in the federal case of embezzlement and fraud, but have not yet been charged or arrested.
The joint investigation is being handled by the FBI's Springfield office and Lenox Police.
Police Chief Stephen O'Brien said on Monday that he has been in contact with the bureau, but the status of the case remains unchanged since November. "This is still a very active investigation," he stated.
Bank President Paul Merlino, an executive at Lenox National since 1975, told The Eagle that, following what he has called "a shocking betrayal by two trusted employees," tighter internal security procedures have been deployed.
"We've done everything we can," he asserted. "We're doing more than we did before, we thought we had adequate procedures. They say it's a very difficult situation when there's collusion" involving two employees.
"I'm told the FBI is very, very thorough but works very slowly," said Merlino. He has had no further contact with FBI agents since the investigation began.
"I wish we knew; we're anxious to have it resolved," he added. "It's frustrating, not knowing. I'd like to have their names out there, but it's not my position. It seems unfair to us."
The bank has submitted claims to its insurer to recover the funds stolen from the cash vault, which Merlino described as ranging from $300,000 to $400,000. The missing funds will be replaced through an insurance bond arranged via the Toole Agency, based in Lee and Lenox.
No depositors' funds were affected by the embezzlement, which involved the bank's working capital, Merlino emphasized.
FBI officials did not immediately return a call for comment.
At the time the probe was launched, Mark Karangikis, supervisor of the FBI's Springfield office, said that when completed, the findings will be relayed to the U.S. Attorney's office in Massachusetts.
In terms of the bank's reputation and customer confidence, Merlino commented that "the public has been extremely supportive." On his desk was a pile of cards and letters from customers and well-wishers, including one from state Rep. William "Smitty" Pignatelli, D-Lenox, augmenting personal visits from residents.
The bank president described "a very touching call" he received at home from Josephine Pignatelli, 101, an aunt of the state lawmaker who lives at the Cameron House assisted-living facility and is the town's oldest native resident, according to Town Hall records. Ms. Pignatelli, a former banker, was a Merlino colleague when he broke into the industry in Pittsfield during the early 1970s.
"Some customers were upset at the individuals who were involved," Merlino acknowledged, "but they were not upset at the bank."
"Our big concern right from the beginning was the reputation of the bank," he noted. "It's been built up over years. We've gotten over what's called the ‘reputation risk.' Apparently, we've overcome that. We were trying to be transparent about the situation, we didn't attempt in any way to cover it up."
Maintaining a small-scale bank is challenging, according to Merlino, because of current industry rules and regulations, which he described as "onerous."
"It's not like it was 25 or 30 years ago," he recalled, "when you could make ‘character loans' to somebody you knew. They signed their name and they paid you back." Now, extensive documentation and procedures are required to obtain a loan or open an account.
"The easy thing is to sell out and merge," he added.
Showing posts with label Massachusetts. Show all posts
Showing posts with label Massachusetts. Show all posts
Saturday, March 1, 2014
Sunday, February 9, 2014
Supreme Judicial Court sends staged robbery case back to Worcester court in Massachusetts
The state's highest court has ordered that a local couple whose bank embezzlement convictions were overturned in 2012 by the state Appeals Court be returned to Worcester Superior Court for resentencing on the lesser offense of larceny by embezzlement.
George Labadie and his wife, Susan Carcieri, were found guilty in 2010 of staging an Aug. 27, 2002, robbery at the Wyman-Gordon Federal Credit Union on Grafton Street, where Mrs. Carcieri worked as an assistant manager, and making off with $210,000 in stolen cash.
A Worcester Superior Court jury convicted both husband and wife of embezzlement from a bank by a bank employee. Mr. Labadie was found guilty as a joint venturer.
He was also convicted of attempted counterfeiting and possession of counterfeiting tools based on items recovered by police in a search of the couple's home at 521 Grafton St. two days after the reported robbery.
Finding that state courts lack jurisdiction over the crime of embezzlement from a federal credit union, the Appeals Court reversed both bank embezzlement convictions in 2012.
Mr. Labadie was sentenced in 2010 to 10 to 12 years in state prison on the bank embezzlement charge, and to a concurrent term of 9 to 10 years for possession of counterfeiting tools. He was placed on probation for 10 years, to begin upon his release, on the attempted counterfeiting charge.
The Appeals Court ruling did not affect the sentences on the counterfeiting charges.
Mrs. Carcieri was sentenced to 4 to 7 years' imprisonment, but the sentence was later stayed pending appeal.
Both sides sought further appellate review by the state Supreme Judicial Court, which issued an 11-page ruling Wednesday.
The SJC found that because a federal credit union is not a bank, as defined by state law, Mr. Labadie and Ms. Carcieri were entitled to judgments of acquittal on the bank embezzlement charges. The court vacated those convictions.
It went on to find, however, that larceny by embezzlement is a "lesser included offense" of bank embezzlement, and that state prosecutors were not barred from bringing larceny by embezzlement charges against a federal credit union employee.
"Because the jury's verdicts demonstrate that they found the defendants guilty of all the required elements of larceny by embezzlement, we remand for entry of convictions of this lesser included offense and for resentencing," the SJC wrote.
Larceny is punishable by a state prison sentence of up to 5 years.
In its 2012 ruling, the Appeals Court found that the crime of embezzlement from a federal credit union was within the exclusive jurisdiction of the federal courts, but that a prosecution for the lesser included offense of larceny by embezzlement was not precluded in the state courts. The court said double jeopardy would not prevent a retrial of Mr. Labadie and his wife on the lesser charge and sent the case back to Worcester Superior Court.
The case then went to the SJC after both sides sought further appellate review.
The Appeals Court noted in its ruling that Ms. Carcieri called 911 on the morning in question to report that an unknown man had forced his way into the credit union behind her and compelled her to open the safe. Various circumstances, including the fact that Ms. Carcieri was only loosely bound when police officers arrived, made them suspicious of her account, according to the court.
The suspicions were heightened two days later, the Appeals Court noted, when police found bundles of cash in the same denominations that had been stolen from the credit union in the couple's home. Some of the bundles were still wrapped in distinctive bands from the Federal Reserve Bank, according to the Appeals Court ruling.
The SJC decision was written by Judge Ralph D. Gants. Assistant District Attorney Donna-Marie Haran represented the office of District Attorney Joseph D. Early Jr. on appeal. Ms. Carcieri was represented on appeal by lawyer Paul C. Brennan and Mr. Labadie by lawyer Patricia A. DeJuneas
A 62-year-old city woman is scheduled to be resentenced next month for her role in the theft of more than $200,000 from the Grafton Street credit union where she worked.
Susan Carcieri and her husband, George Labadie, were found guilty in 2010 of staging an Aug. 27, 2002, robbery at the Wyman-Gordon Federal Credit Union on Grafton Street, where Ms. Carcieri worked as an assistant manager, and stealing $210,000.
A Worcester Superior Court jury convicted both the husband and wife of embezzlement from a bank by a bank employee. Mr. Labadie was found guilty as a joint venturer.
He was also convicted of attempted counterfeiting and possession of counterfeiting tools based on items that were recovered by police during a search of the couple's home at 521 Grafton St. two days after the reported robbery.
The state Appeals Court reversed both bank embezzlement convictions in 2012, finding that state courts lacked jurisdiction over the crime of embezzlement from a credit union.
Mr. Labadie was sentenced in 2010 to 10 to 12 years in state prison on the bank embezzlement charge, and to a concurrent prison term of 9 to 10 years for possessing counterfeiting tools. He was placed on probation for 10 years, to begin upon his release, on the attempted counterfeiting charge.
Ms. Carcieri was sentenced to 4 to 7 years' imprisonment, but the sentence was later stayed by Judge Peter W. Agnes Jr., pending appeal. Judge Agnes has since been appointed to the Appeals Court.
Ms. Carcieri and Mr. Labadie were ordered to a pay a total of $210,000 in restitution.
The Appeals Court ruling did not affect the sentences imposed on Mr. Labadie on the counterfeiting charges. The appellate court found that the crime of embezzlement from a federal credit union was within the exclusive jurisdiction of the federal courts, but that a prosecution for the lesser included offense of larceny by embezzlement was not barred in the state courts. The Appeals Court said double jeopardy would not preclude a retrial of Mr. Labadie and his wife on the lesser charge and sent the case back to Worcester Superior Court.
The defense and prosecution both sought further appellate review of the Appeals Court decision by the state Supreme Judicial Court. In an 11-page ruling issued Feb. 5, the SJC vacated the bank embezzlement charges and ordered that Ms. Carcieri and Mr. Labadie be returned to Worcester Superior Court for resentencing on the lesser offense of larceny by embezzlement.
The state's highest court found that larceny by embezzlement is a "lesser included offense" of bank embezzlement, and that state prosecutors were not prohibited from bringing larceny by embezzlement charges against a federal credit union employee.
"Because the jury's verdicts demonstrate that they found the defendants guilty of all the required elements of larceny by embezzlement, we remand for entry of convictions of this lesser included offense and for resentencing," the SJC wrote.
Larceny by embezzlement is punishable by a state prison sentence of up to five years.
Judge Janet Kenton-Walker set a March 25 date Monday for Ms. Carcieri's resentencing at the request of Assistant District Attorney Jeffrey T. Travers and defense lawyer Leonard J. Staples.
A date has not been set for her husband's resentencing.
George Labadie and his wife, Susan Carcieri, were found guilty in 2010 of staging an Aug. 27, 2002, robbery at the Wyman-Gordon Federal Credit Union on Grafton Street, where Mrs. Carcieri worked as an assistant manager, and making off with $210,000 in stolen cash.
A Worcester Superior Court jury convicted both husband and wife of embezzlement from a bank by a bank employee. Mr. Labadie was found guilty as a joint venturer.
He was also convicted of attempted counterfeiting and possession of counterfeiting tools based on items recovered by police in a search of the couple's home at 521 Grafton St. two days after the reported robbery.
Finding that state courts lack jurisdiction over the crime of embezzlement from a federal credit union, the Appeals Court reversed both bank embezzlement convictions in 2012.
Mr. Labadie was sentenced in 2010 to 10 to 12 years in state prison on the bank embezzlement charge, and to a concurrent term of 9 to 10 years for possession of counterfeiting tools. He was placed on probation for 10 years, to begin upon his release, on the attempted counterfeiting charge.
The Appeals Court ruling did not affect the sentences on the counterfeiting charges.
Mrs. Carcieri was sentenced to 4 to 7 years' imprisonment, but the sentence was later stayed pending appeal.
Both sides sought further appellate review by the state Supreme Judicial Court, which issued an 11-page ruling Wednesday.
The SJC found that because a federal credit union is not a bank, as defined by state law, Mr. Labadie and Ms. Carcieri were entitled to judgments of acquittal on the bank embezzlement charges. The court vacated those convictions.
It went on to find, however, that larceny by embezzlement is a "lesser included offense" of bank embezzlement, and that state prosecutors were not barred from bringing larceny by embezzlement charges against a federal credit union employee.
"Because the jury's verdicts demonstrate that they found the defendants guilty of all the required elements of larceny by embezzlement, we remand for entry of convictions of this lesser included offense and for resentencing," the SJC wrote.
Larceny is punishable by a state prison sentence of up to 5 years.
In its 2012 ruling, the Appeals Court found that the crime of embezzlement from a federal credit union was within the exclusive jurisdiction of the federal courts, but that a prosecution for the lesser included offense of larceny by embezzlement was not precluded in the state courts. The court said double jeopardy would not prevent a retrial of Mr. Labadie and his wife on the lesser charge and sent the case back to Worcester Superior Court.
The case then went to the SJC after both sides sought further appellate review.
The Appeals Court noted in its ruling that Ms. Carcieri called 911 on the morning in question to report that an unknown man had forced his way into the credit union behind her and compelled her to open the safe. Various circumstances, including the fact that Ms. Carcieri was only loosely bound when police officers arrived, made them suspicious of her account, according to the court.
The suspicions were heightened two days later, the Appeals Court noted, when police found bundles of cash in the same denominations that had been stolen from the credit union in the couple's home. Some of the bundles were still wrapped in distinctive bands from the Federal Reserve Bank, according to the Appeals Court ruling.
The SJC decision was written by Judge Ralph D. Gants. Assistant District Attorney Donna-Marie Haran represented the office of District Attorney Joseph D. Early Jr. on appeal. Ms. Carcieri was represented on appeal by lawyer Paul C. Brennan and Mr. Labadie by lawyer Patricia A. DeJuneas
A 62-year-old city woman is scheduled to be resentenced next month for her role in the theft of more than $200,000 from the Grafton Street credit union where she worked.
Susan Carcieri and her husband, George Labadie, were found guilty in 2010 of staging an Aug. 27, 2002, robbery at the Wyman-Gordon Federal Credit Union on Grafton Street, where Ms. Carcieri worked as an assistant manager, and stealing $210,000.
A Worcester Superior Court jury convicted both the husband and wife of embezzlement from a bank by a bank employee. Mr. Labadie was found guilty as a joint venturer.
He was also convicted of attempted counterfeiting and possession of counterfeiting tools based on items that were recovered by police during a search of the couple's home at 521 Grafton St. two days after the reported robbery.
The state Appeals Court reversed both bank embezzlement convictions in 2012, finding that state courts lacked jurisdiction over the crime of embezzlement from a credit union.
Mr. Labadie was sentenced in 2010 to 10 to 12 years in state prison on the bank embezzlement charge, and to a concurrent prison term of 9 to 10 years for possessing counterfeiting tools. He was placed on probation for 10 years, to begin upon his release, on the attempted counterfeiting charge.
Ms. Carcieri was sentenced to 4 to 7 years' imprisonment, but the sentence was later stayed by Judge Peter W. Agnes Jr., pending appeal. Judge Agnes has since been appointed to the Appeals Court.
Ms. Carcieri and Mr. Labadie were ordered to a pay a total of $210,000 in restitution.
The Appeals Court ruling did not affect the sentences imposed on Mr. Labadie on the counterfeiting charges. The appellate court found that the crime of embezzlement from a federal credit union was within the exclusive jurisdiction of the federal courts, but that a prosecution for the lesser included offense of larceny by embezzlement was not barred in the state courts. The Appeals Court said double jeopardy would not preclude a retrial of Mr. Labadie and his wife on the lesser charge and sent the case back to Worcester Superior Court.
The defense and prosecution both sought further appellate review of the Appeals Court decision by the state Supreme Judicial Court. In an 11-page ruling issued Feb. 5, the SJC vacated the bank embezzlement charges and ordered that Ms. Carcieri and Mr. Labadie be returned to Worcester Superior Court for resentencing on the lesser offense of larceny by embezzlement.
The state's highest court found that larceny by embezzlement is a "lesser included offense" of bank embezzlement, and that state prosecutors were not prohibited from bringing larceny by embezzlement charges against a federal credit union employee.
"Because the jury's verdicts demonstrate that they found the defendants guilty of all the required elements of larceny by embezzlement, we remand for entry of convictions of this lesser included offense and for resentencing," the SJC wrote.
Larceny by embezzlement is punishable by a state prison sentence of up to five years.
Judge Janet Kenton-Walker set a March 25 date Monday for Ms. Carcieri's resentencing at the request of Assistant District Attorney Jeffrey T. Travers and defense lawyer Leonard J. Staples.
A date has not been set for her husband's resentencing.
Thursday, November 28, 2013
Investigation into embezzlement at WMass bank
The president of a Lenox bank says two longtime employees have been fired and local and federal police are cooperating on an investigation into the suspected embezzlement of bank assets.
Lenox National Bank President Paul Merlino calls the allegations a "shocking betrayal."
He tells The Berkshire Eagle that because no charges have been filed, he cannot disclose the fired employees' names, but did say they were tellers. He also could not disclose the amount allegedly embezzled.
The FBI confirmed Monday that it is conducting a joint investigation with the Lenox Police Department into the alleged embezzlement.
Merlino said no customer accounts are affected and all losses are covered by insurance.
The independent bank founded in 1889 has $65 million in assets and just one branch.
Lenox National Bank President Paul Merlino calls the allegations a "shocking betrayal."
He tells The Berkshire Eagle that because no charges have been filed, he cannot disclose the fired employees' names, but did say they were tellers. He also could not disclose the amount allegedly embezzled.
The FBI confirmed Monday that it is conducting a joint investigation with the Lenox Police Department into the alleged embezzlement.
Merlino said no customer accounts are affected and all losses are covered by insurance.
The independent bank founded in 1889 has $65 million in assets and just one branch.
Friday, May 10, 2013
Former Citizens Bank Teller Sentenced for Embezzlement in Massachusetts
A former bank teller was sentenced today for committing bank fraud in connection with her embezzlement of $377,000 from Citizens Bank.
Maria DaSilva, 54, of Smithfield, Rhode Island, was sentenced by U.S. District Judge Richard Stearns to 27 months in prison, to be followed by 36 months of supervised release, and ordered to pay $377,926 in restitution. In January 2013, DaSilva pleaded guilty to bank fraud.
From February 2008 through January 2012, while she was working as a bank teller at the North Attleboro branch of Citizens Bank, DaSilva embezzled over $375,000 from the accounts of three elderly bank customers by forging withdrawal slips on various accounts they held.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today.
The case was investigated by the Lakeville Office of the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Jeremy Sternberg of Ortiz’s Economic Crimes Unit.
In addition, DaSilva was ordered to pay $377,926 in restitution.
In January 2013, DaSilva, a teller at the Citizens Bank branch at Stop & Shop, pleaded guilty to stealing the money from the accounts of three elderly bank customers from February 2008 to January 2012 by forging withdrawal slips on the various accounts they held, according to prosecutors.
During the course of the fraud, DaSilva stole from the account of one elderly victim to cover her misdeeds when a family member of a victim who died came to close the accounts to settle the estate, according to court records.
Assistant U.S. Attorney Jeremy Sternberg sought a 30-month sentence, noting that DaSilva stole from elderly victims she knew were vulnerable. He discounted her claims of financial and family hardships, noting the large amount of money she stole in a short period of time.
Saying the embezzlement was not a single occurrence, Sternberg wrote in an 11-page sentencing memorandum that "it involved the care, craft and cunning to execute the criminal activity on almost 100 separate occasions over a nearly 4-year period.
The victims were identified only by initials in court records and their losses were covered by Citizens Bank.
A federal public defender for DaSilva, Christopher Skinner of Boston, argued against incarcerating his client. He recommended a probationary period of five years with six months of home confinement on an electronic bracelet.
Skinner wrote in a 15-page sentencing memorandum that DaSilva was not motivated by greed, gambling debts or substance abuse problems. He said she incurred financial hardships after her husband was twice convicted of drunken driving and was fired from his job. In addition to being the sole bread winner in the family, DaSilva was also the sole caretaker of an elderly mother with dementia, Skinner said.
"She did not adopt a lavish life style or buy expensive cars or jewelry," Skinner wrote.
The public defender also noted that DaSilva, the mother of two sons who are about to enter the military, felt remorse over her crime, cooperated with bank investigators and was admitting to the bank fraud before prosecutors had to seek a grand jury indictment.
The case was investigated by the Lakeville office of the Federal Bureau of Investigation.
Saturday, April 27, 2013
Former Adams Municipal Employees Federal Credit Union manager Patricia Piscioneri gets 1 day in prison, supervised release, on embezzlement charge in Massachusetts
An Adams woman was sentenced on Thursday in U.S. District Court for embezzlement and other related charges.
Patricia Piscioneri, 67, was sentenced by Judge Michael A. Ponsor to one day in prison, followed by two years of supervised release, the first six months of which must be spent in home confinement, 100 hours of community service, and a $3,000 fine.
In January, Piscioneri pleaded guilty to a 30-count indictment charging her with embezzlement of funds by a credit union employee and false entries.
While employed as the manager of the former Adams Municipal Employees Federal Credit Union, Piscioneri embezzled credit union funds by creating fraudulent loan accounts in the names of credit union members and depositing the proceeds of these fraudulent loans into her own account(s), her husband’s account(s), other family members’ account(s), or used the proceeds to pay off earlier obtained fraudulent loans.
In an attempt to avoid detection, Piscioneri created fraudulent loan documentation, such as loan applications and promissory notes and forged signatures on these documents, created false entries in the credit union's accounting system, and advanced the payment due dates of the fraudulent loans.
U.S. Attorney Carmen M. Ortiz and Richard DesLauriers, special agent in charge of the FBI Boston Field Division, made the announcement of the sentencing. The case is being prosecuted by assistant U.S. attorney Michelle L. Dineen Jerrett.
Saturday, January 19, 2013
Former Credit Union Employee Pleads to Embezzlement in Massachusetts
An Adams woman and former credit union employee was convicted today of
embezzlement and making false entries into the books of the credit union.
Patricia Piscioneri, 67, pleaded guilty before U.S. District Judge Michael A. Ponsor to a 30-count indictment charging her with embezzlement of funds by a credit union employee and false entries.
While employed as the manager of the former Adams Municipal Employees Federal Credit Union (AMEFCU), Piscioneri embezzled credit union funds by creating fraudulent loan accounts in the names of credit union members and depositing the proceeds of these fraudulent loans into her own account(s), her husband’s account(s), or other family members’ account(s), or used the proceeds to pay off previously obtained fraudulent loans. In an attempt to avoid detection, Piscioneri created fraudulent loan documentation, such as loan applications and promissory notes, and forged signatures on the fraudulent loan documentation. Additionally, Piscioneri created false entries in the AMEFCU accounting system and advanced the payment due dates of the fraudulent loans.
Sentencing is scheduled for April 25, 2013. Piscioneri faces up to 30 years in prison, to be followed by five years of supervised release, and a $1 million fine.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Michelle L. Dineen Jerrett of Ortiz’s Health Care Fraud Unit.
Patricia Piscioneri, 67, pleaded guilty before U.S. District Judge Michael A. Ponsor to a 30-count indictment charging her with embezzlement of funds by a credit union employee and false entries.
While employed as the manager of the former Adams Municipal Employees Federal Credit Union (AMEFCU), Piscioneri embezzled credit union funds by creating fraudulent loan accounts in the names of credit union members and depositing the proceeds of these fraudulent loans into her own account(s), her husband’s account(s), or other family members’ account(s), or used the proceeds to pay off previously obtained fraudulent loans. In an attempt to avoid detection, Piscioneri created fraudulent loan documentation, such as loan applications and promissory notes, and forged signatures on the fraudulent loan documentation. Additionally, Piscioneri created false entries in the AMEFCU accounting system and advanced the payment due dates of the fraudulent loans.
Sentencing is scheduled for April 25, 2013. Piscioneri faces up to 30 years in prison, to be followed by five years of supervised release, and a $1 million fine.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Michelle L. Dineen Jerrett of Ortiz’s Health Care Fraud Unit.
Monday, September 19, 2011
Police have filed charges against a Sovereign Bank employee alleging that he embezzled $2,300 in Massachusetts
Police have filed charges against a Sovereign Bank employee alleging that he embezzled $2,300 from a deceased customer through fraudulent transactions.
Giovanni Pena, 20, of 24 Henry St., Southbridge, has been charged with four counts of misconduct by a bank officer/employee and four counts of embezzlement from a bank.
Pena will be issued a summons to appear in Brockton District Court for arraignment at a later date.
Whitman Police Chief Christine May-Stafford said that over a four-month period Pena is accused of withdrawing $2,300 in four separate transactions from an elderly person’s savings account, “but in fact the person was actually deceased.”
The chief said the transactions were made as “over-the-counter withdrawals.”
Police do not know if Pena transferred the money into a separate bank account or withdrew cash.
The family of the deceased person contacted the bank about the suspicious transactions on July 28.
Sovereign Bank loss prevention then contacted Whitman police to look into the matter.
Whitman Detective Stephen Drass conducted the investigation which led to the felony charges.
Pena is no longer employed by Sovereign Bank, the chief added
Read more: http://www.enterprisenews.com/archive/x948303562/Whitman-bank-theft-believed-to-be-inside-job#ixzz1YPo1xjWB
Giovanni Pena, 20, of 24 Henry St., Southbridge, has been charged with four counts of misconduct by a bank officer/employee and four counts of embezzlement from a bank.
Pena will be issued a summons to appear in Brockton District Court for arraignment at a later date.
Whitman Police Chief Christine May-Stafford said that over a four-month period Pena is accused of withdrawing $2,300 in four separate transactions from an elderly person’s savings account, “but in fact the person was actually deceased.”
The chief said the transactions were made as “over-the-counter withdrawals.”
Police do not know if Pena transferred the money into a separate bank account or withdrew cash.
The family of the deceased person contacted the bank about the suspicious transactions on July 28.
Sovereign Bank loss prevention then contacted Whitman police to look into the matter.
Whitman Detective Stephen Drass conducted the investigation which led to the felony charges.
Pena is no longer employed by Sovereign Bank, the chief added
Read more: http://www.enterprisenews.com/archive/x948303562/Whitman-bank-theft-believed-to-be-inside-job#ixzz1YPo1xjWB
Ex-bank official faces embezzlement count in Massachusetts
The former manager of the North Easton Savings Bank on Copeland Drive has been charged in federal court with embezzling more than $175,000 in funds through unauthorized withdrawals from customers' accounts, including one who died a week before she allegedly stole funds from his certificate of deposit account.
Kathleen Didonato, also known as Kathleen O'Connell, of 10 Garfield St., in Foxboro, faces charges of theft by a bank employee, bank fraud and aggravated identity theft in U.S. District Court in Boston.
A probable cause hearing is scheduled Aug. 29.
Didonato was an assistant bank manager when she allegedly began withdrawing funds in October 2010 and continued the scheme until January of this year. She was employed by the bank from 2007 until February of this year.
Bank auditors identified 126 fraudulent transactions linked to Didonato, including 32 transactions totaling nearly $70,000 involving withdrawals of cash or bank checks from one couple with an account at the bank, according to an affidavit of an FBI agent filed to support the charges. Didonato used $10,000 she allegedly withdrew from a customer's CD account to pay down a car loan for her 2007 Ford Fusion and another $10,000 from another customer's CD account to buy a 2004 Cadillac CTS luxury sports sedan, according to court records.
In another instance, she allegedly took $12,530 in cash from a customer for a bank check to pay the Emmanuel College tuition of a customer's daughter. But instead of depositing the cash she allegedly stole it and then balanced her ledger by electronically withdrawing funds from another customer's account, according to court records.
When one of the customer's questioned Didonato about missing funds from his account, she allegedly "manipulated the bank's ledger" to cover up a fraudulent withdrawal and gave the customer a print out "to lull him into believing his account was safe," according to court records.
The bank is insured by the Federal Deposit Insurance Corp. and bank president and chief executive officer Tom Deubler said Friday that all the customer accounts are "100 percent" accurate, including those allegedly manipulated by Didonato to perpetuate her crimes.
"Since 1864, no customer has ever lost a penny," Deubler said.
Didonato is free on a $10,000 bond and did not immediately return a telephone call Friday by The Sun Chronicle seeking comment. Her lawyer, a federal public defender, was not available. During the investigation, Didonato allegedly told FBI agents that she was "let go" from North Easton Savings Bank for "sloppiness" in performing her job. She allegedly told the agents she kept all of her passwords at her work station under her mouse pad, according to court records.
Didonato also allegedly stole the agents she bought her Cadillac from a customer at the bank and paid for it by trading in her Ford. When confronted about the alleged misapplication and embezzlement of account holder funds at the bank, Didonato declined to answer more questions without a lawyer present, according to court records.
The complaint was filed by the U.S. Attorney's office in Boston July 25.
According to court records, both sides are in plea negotiations to resolve the case.
Kathleen Didonato, also known as Kathleen O'Connell, of 10 Garfield St., in Foxboro, faces charges of theft by a bank employee, bank fraud and aggravated identity theft in U.S. District Court in Boston.
A probable cause hearing is scheduled Aug. 29.
Didonato was an assistant bank manager when she allegedly began withdrawing funds in October 2010 and continued the scheme until January of this year. She was employed by the bank from 2007 until February of this year.
Bank auditors identified 126 fraudulent transactions linked to Didonato, including 32 transactions totaling nearly $70,000 involving withdrawals of cash or bank checks from one couple with an account at the bank, according to an affidavit of an FBI agent filed to support the charges. Didonato used $10,000 she allegedly withdrew from a customer's CD account to pay down a car loan for her 2007 Ford Fusion and another $10,000 from another customer's CD account to buy a 2004 Cadillac CTS luxury sports sedan, according to court records.
In another instance, she allegedly took $12,530 in cash from a customer for a bank check to pay the Emmanuel College tuition of a customer's daughter. But instead of depositing the cash she allegedly stole it and then balanced her ledger by electronically withdrawing funds from another customer's account, according to court records.
When one of the customer's questioned Didonato about missing funds from his account, she allegedly "manipulated the bank's ledger" to cover up a fraudulent withdrawal and gave the customer a print out "to lull him into believing his account was safe," according to court records.
The bank is insured by the Federal Deposit Insurance Corp. and bank president and chief executive officer Tom Deubler said Friday that all the customer accounts are "100 percent" accurate, including those allegedly manipulated by Didonato to perpetuate her crimes.
"Since 1864, no customer has ever lost a penny," Deubler said.
Didonato is free on a $10,000 bond and did not immediately return a telephone call Friday by The Sun Chronicle seeking comment. Her lawyer, a federal public defender, was not available. During the investigation, Didonato allegedly told FBI agents that she was "let go" from North Easton Savings Bank for "sloppiness" in performing her job. She allegedly told the agents she kept all of her passwords at her work station under her mouse pad, according to court records.
Didonato also allegedly stole the agents she bought her Cadillac from a customer at the bank and paid for it by trading in her Ford. When confronted about the alleged misapplication and embezzlement of account holder funds at the bank, Didonato declined to answer more questions without a lawyer present, according to court records.
The complaint was filed by the U.S. Attorney's office in Boston July 25.
According to court records, both sides are in plea negotiations to resolve the case.
Saturday, January 8, 2011
Convicted embezzler freed pending appeal in Massachusetts
A 59-year-old Grafton Street woman has been released from custody pending an appeal of her Oct. 26 conviction for bank embezzlement.
Susan Carcieri of 521 Grafton St. was sentenced to 4 to 7 years in state prison Nov. 1 after a Worcester Superior Court jury found her and her husband, George Labadie, guilty of staging an Aug. 27, 2002, robbery at the Wyman-Gordon Federal Credit Union on Grafton Street, where Ms. Carcieri worked, and making off with $210,000 in stolen money.
Judge Peter W. Agnes Jr., who presided over the couple's trial, allowed a motion yesterday asking that Ms. Carcieri's sentence, which she began serving Nov. 1, be stayed pending an appeal of her conviction to the state Appeals Court.
Her lawyer, Leonard J. Staples, argued in a brief in support of his request for a stay that the court's denial of his motion for a mistrial during jury deliberations constituted a “meritorious” issue on appeal.
The request for a mistrial was made after the foreman of the deliberating jury reported to the judge Oct. 25 that she had been approached over the previous weekend by someone on Mr. Labadie's behalf at the diner where she worked. Judge Agnes excused the juror and replaced her with an alternate juror. He also revoked Mr. Labadie's bail.
The jury was instructed to begin its deliberations anew and rendered its unanimous verdicts the next day.
Mr. Labadie, who was sentenced to 10 to 12 years' imprisonment, remains in custody. He is also appealing his conviction.
Mr. Staples argued that Ms. Carcieri met the criteria for a stay of her sentence pending appeal in that she did not pose a risk of flight or further criminal conduct and had raised an issue worthy of presentation to an appellate court.
Prosecutors opposed the request.
Susan Carcieri of 521 Grafton St. was sentenced to 4 to 7 years in state prison Nov. 1 after a Worcester Superior Court jury found her and her husband, George Labadie, guilty of staging an Aug. 27, 2002, robbery at the Wyman-Gordon Federal Credit Union on Grafton Street, where Ms. Carcieri worked, and making off with $210,000 in stolen money.
Judge Peter W. Agnes Jr., who presided over the couple's trial, allowed a motion yesterday asking that Ms. Carcieri's sentence, which she began serving Nov. 1, be stayed pending an appeal of her conviction to the state Appeals Court.
Her lawyer, Leonard J. Staples, argued in a brief in support of his request for a stay that the court's denial of his motion for a mistrial during jury deliberations constituted a “meritorious” issue on appeal.
The request for a mistrial was made after the foreman of the deliberating jury reported to the judge Oct. 25 that she had been approached over the previous weekend by someone on Mr. Labadie's behalf at the diner where she worked. Judge Agnes excused the juror and replaced her with an alternate juror. He also revoked Mr. Labadie's bail.
The jury was instructed to begin its deliberations anew and rendered its unanimous verdicts the next day.
Mr. Labadie, who was sentenced to 10 to 12 years' imprisonment, remains in custody. He is also appealing his conviction.
Mr. Staples argued that Ms. Carcieri met the criteria for a stay of her sentence pending appeal in that she did not pose a risk of flight or further criminal conduct and had raised an issue worthy of presentation to an appellate court.
Prosecutors opposed the request.
Monday, October 25, 2010
Defendant locked up for contacting juror in Massachusetts
A Grafton Street man on trial on bank embezzlement and attempted counterfeiting charges was locked up today after the foreman of the deliberating jury in his case reported that she was approached by someone on his behalf over the weekend.
Judge Peter W. Agnes Jr. revoked George Labadie's release on personal recognizance after hearing from him and the female juror and ordered that Mr. Labadie remain in custody without bail until the conclusion of the Worcester Superior Court trial.
The juror, who was later discharged and replaced by an alternate juror, told Judge Agnes during a private sidebar conference this morning that Mr. Labadie was present Saturday when another man approached her at the restaurant where she worked, according to a summary of her comments the judge provided in open court.
When told by Judge Agnes that he was considering holding him in summary criminal contempt, Mr. Labadie asked to respond. Mr. Labadie said he and a man he identified as Chad Richardson happened to be in the restaurant in question Saturday, when he thought he recognized the woman as a juror in his case. He said he told Mr. Richardson he had to leave and did so after purchasing the sandwich he had ordered.
At some point while they were still in the restaurant, Mr. Richardson left his side, Mr. Labadie explained to Judge Agnes.
“I never sent anybody to approach anybody, your Honor,” he said.
Mr. Labadie went on to say that he first met the juror in question eight to ten years ago at a diner. He said he saw her on a couple of occasions after that and gave her his cell phone number.
On Wednesday, Oct. 13, two days after his trial began, Mr. Labadie said he was on the front steps of the courthouse smoking a cigarette when the juror walked by him and told him he looked familiar. She then said she considered all police officers “ ‘liars,'” according to Mr. Labadie.
After telling her he could not talk to her and starting to walk away, he received a cell phone call from the woman and hung up as soon as he recognized her voice, Mr. Labadie told the judge.
As he was leaving the courthouse that day, he said, he walked by the woman and she said, “ ‘Good night, sweetie,' ” according to Mr. Labadie. He described another courthouse encounter with the juror after she reportedly got on the elevator in which he was riding.
He said he did not recognize the woman as someone he knew during jury selection in his case and did not report their later conversations to the court or his lawyer, H. Hoover Garabedian, because he was frightened and did not know what to do.
Judge Agnes spoke to the juror privately again after hearing from Mr. Labadie. Assistant District Attorney Jeffrey T. Travers asked that Mr. Labadie be held on $100,000 cash bail during the pendency of his trial.
Mr. Labadie, 51, and his wife, 59-year-old Susan Carcieri, are accused of staging an Aug. 27, 2002, robbery at the Wyman_Gordon Federal Credit Union at 530 Grafton St., where Ms. Carcieri worked, and stealing $210,000. They are also facing attempted counterfeiting charges based on items police said they seized during a search of the couple's home at 521 Grafton St. two days after the reported robbery.
After Mr. Travers made his bail request this morning, Judge Agnes said he credited the testimony of the juror, and not Mr. Labadie, concerning their contacts. Saying he was concerned about the risk of jury “contamination,” he revoked Mr. Labadie's release on his own recognizance and ordered him held without bail until the trial is over.
The judge then excused the jury foreperson, replaced her with an alternate juror, and directed the jurors to begin their deliberations anew.
The jury had deliberated for more than 17 hours over three days without reaching a verdict.
Judge Peter W. Agnes Jr. revoked George Labadie's release on personal recognizance after hearing from him and the female juror and ordered that Mr. Labadie remain in custody without bail until the conclusion of the Worcester Superior Court trial.
The juror, who was later discharged and replaced by an alternate juror, told Judge Agnes during a private sidebar conference this morning that Mr. Labadie was present Saturday when another man approached her at the restaurant where she worked, according to a summary of her comments the judge provided in open court.
When told by Judge Agnes that he was considering holding him in summary criminal contempt, Mr. Labadie asked to respond. Mr. Labadie said he and a man he identified as Chad Richardson happened to be in the restaurant in question Saturday, when he thought he recognized the woman as a juror in his case. He said he told Mr. Richardson he had to leave and did so after purchasing the sandwich he had ordered.
At some point while they were still in the restaurant, Mr. Richardson left his side, Mr. Labadie explained to Judge Agnes.
“I never sent anybody to approach anybody, your Honor,” he said.
Mr. Labadie went on to say that he first met the juror in question eight to ten years ago at a diner. He said he saw her on a couple of occasions after that and gave her his cell phone number.
On Wednesday, Oct. 13, two days after his trial began, Mr. Labadie said he was on the front steps of the courthouse smoking a cigarette when the juror walked by him and told him he looked familiar. She then said she considered all police officers “ ‘liars,'” according to Mr. Labadie.
After telling her he could not talk to her and starting to walk away, he received a cell phone call from the woman and hung up as soon as he recognized her voice, Mr. Labadie told the judge.
As he was leaving the courthouse that day, he said, he walked by the woman and she said, “ ‘Good night, sweetie,' ” according to Mr. Labadie. He described another courthouse encounter with the juror after she reportedly got on the elevator in which he was riding.
He said he did not recognize the woman as someone he knew during jury selection in his case and did not report their later conversations to the court or his lawyer, H. Hoover Garabedian, because he was frightened and did not know what to do.
Judge Agnes spoke to the juror privately again after hearing from Mr. Labadie. Assistant District Attorney Jeffrey T. Travers asked that Mr. Labadie be held on $100,000 cash bail during the pendency of his trial.
Mr. Labadie, 51, and his wife, 59-year-old Susan Carcieri, are accused of staging an Aug. 27, 2002, robbery at the Wyman_Gordon Federal Credit Union at 530 Grafton St., where Ms. Carcieri worked, and stealing $210,000. They are also facing attempted counterfeiting charges based on items police said they seized during a search of the couple's home at 521 Grafton St. two days after the reported robbery.
After Mr. Travers made his bail request this morning, Judge Agnes said he credited the testimony of the juror, and not Mr. Labadie, concerning their contacts. Saying he was concerned about the risk of jury “contamination,” he revoked Mr. Labadie's release on his own recognizance and ordered him held without bail until the trial is over.
The judge then excused the jury foreperson, replaced her with an alternate juror, and directed the jurors to begin their deliberations anew.
The jury had deliberated for more than 17 hours over three days without reaching a verdict.
Sunday, October 17, 2010
Former Massachusetts Bank Branch Manager Charged in Mortgage Scam
A former Bank of America branch manager was charged today in federal court with wire fraud and bank fraud for his role in connection with a multi-year, multiproperty mortgage fraud scheme in Dorchester and Roxbury. ARTHUR SAMUELS, 36, of Mattapan, was charged in an Indictment with six counts of wire fraud and one count of bank fraud. The Indictment alleges that from September 2006 to July 2008, SAMUELS and others committed fraud in connection with the purported sale of condominium units in Dorchester. According to the charges, developer Michael David Scott arranged to purchase multi-family dwellings and then sold individual units in the buildings to straw buyers recruited by Scott, SAMUELS, and others. The straw buyers’ financing for the purchases was obtained by submitting mortgage loan applications that falsely represented key information, such as the buyers’ assets, down payment and intention to reside in the condominiums. SAMUELS also caused false verifications of deposit to be created in support of loan applications submitted to lenders in the names of straw buyers, and acted as a straw buyer himself on three property transactions. In most instances the lenders were led to believe that the straw buyers had made substantial down payments and paid substantial sums at closings.If convicted, SAMUELS faces up to 20 years’ imprisonment to be followed by three years of supervised release and a $250,000 fine for each count of wire fraud, and up to 30 years imprisonment to be followed by five years of supervised release and a fine of $1 million for bank fraud.United States Attorney Carmen M. Ortiz, Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and William P. Offord, Special Agent in Charge of Internal Revenue Service Criminal Investigation – Boston Field Division made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Victor A. Wild and Ryan M. DiSantis of Ortiz’s Economic Crimes Unit.The details contained in the Indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law. Mortgage fraud is a key focus of the Department of Justice. The Department of Justice alongside its federal, state and local partners is committed to investigating and prosecuting significant financial crimes. The Department is committed to combating discrimination and fraud in the lending and financial markets, and recovering proceeds for victims of financial crimes.
Wednesday, September 29, 2010
Ex-WMECO credit union chief pleads guilty to theft in Massachusetts
The former director of the Western Mass. Electric Co. Credit Union pleaded guilty Tuesday to bilking $225,000 from his employer by falsifying expense reports for several years before his retirement in 2006.
Appearing in a wheelchair in U.S. District Court, Robert Koss, of Ludlow, pleaded guilty to embezzlement and filing a false tax return while running the Springfield-based credit union for the utility's employees, family members and retirees. Under federal guidelines, Koss could receive up to 33 months in prison at his sentencing, set for Jan. 21. Koss' scheme began in the late 1990s and continued through 2006, according to Assistant U.S. Attorney William M. Welch II, who said the credit union director collected about $225,000 from invented or inflated expense reimbursements. He also falsified his income on a 2005 tax return, reporting between $20,000 and $30,000 less than he earned, Welch said. As part of a plea deal, Koss agreed to pay about $130,000 in restitution to the credit union; he already paid $80,000 to the union's insurer in a civil suit, and has placed $50,000 in escrow for further repayments, Welch said. Wendy J. Tariff, the credit union's CEO, said accounts at the federally guaranteed institution were never threatened by the scheme. "This is the end of a very sad chapter in our credit union's 88-year history. The staff worked hard throughout the past three-plus years to document and substantiate these losses," she said. "This news will certainly come as a shock to our members and the Massachusetts credit union community," Tarriff said, adding the "credit union remains a safe and sound institution." The deal allowed Koss, who ran the credit union for 30 years, to plead guilty Tuesday without being indicted by a grand jury or arraigned on the charges. Before pleading guilty, Koss was reminded by Judge Michael A. Ponsor that he faced a possible two-year prison sentence. When the judge quizzed the defendant about his health, Koss responded that he needed the wheelchair "because I can't walk long distances." Springfield defense lawyer Jack F. St. Clair said his client had briefed him on physical liabilities before agreeing to the plea.
Appearing in a wheelchair in U.S. District Court, Robert Koss, of Ludlow, pleaded guilty to embezzlement and filing a false tax return while running the Springfield-based credit union for the utility's employees, family members and retirees. Under federal guidelines, Koss could receive up to 33 months in prison at his sentencing, set for Jan. 21. Koss' scheme began in the late 1990s and continued through 2006, according to Assistant U.S. Attorney William M. Welch II, who said the credit union director collected about $225,000 from invented or inflated expense reimbursements. He also falsified his income on a 2005 tax return, reporting between $20,000 and $30,000 less than he earned, Welch said. As part of a plea deal, Koss agreed to pay about $130,000 in restitution to the credit union; he already paid $80,000 to the union's insurer in a civil suit, and has placed $50,000 in escrow for further repayments, Welch said. Wendy J. Tariff, the credit union's CEO, said accounts at the federally guaranteed institution were never threatened by the scheme. "This is the end of a very sad chapter in our credit union's 88-year history. The staff worked hard throughout the past three-plus years to document and substantiate these losses," she said. "This news will certainly come as a shock to our members and the Massachusetts credit union community," Tarriff said, adding the "credit union remains a safe and sound institution." The deal allowed Koss, who ran the credit union for 30 years, to plead guilty Tuesday without being indicted by a grand jury or arraigned on the charges. Before pleading guilty, Koss was reminded by Judge Michael A. Ponsor that he faced a possible two-year prison sentence. When the judge quizzed the defendant about his health, Koss responded that he needed the wheelchair "because I can't walk long distances." Springfield defense lawyer Jack F. St. Clair said his client had briefed him on physical liabilities before agreeing to the plea.
Saturday, July 10, 2010
Peabody, Massachusetts bank teller sentenced in fraud case
A former bank teller from Peabody has been sentenced to nearly three and a half years in prison for stealing customer account information that led to the theft of more than $330,000.Federal prosecutors say 26-year-old Jeffrey Gautreaux pleaded guilty to multiple counts of bank and identity fraud.Authorities say while work as a teller at a Bank of America branch, Gautreaux used his access to bank customer data to steal customer names and account information from November 2004 to February 2006. He then sold the information to someone who did not work for the bank, usually for $2,000 per account.Gautreaux was also sentenced to three years of probation and ordered to pay more than $270,000 in restitution.The thefts were first noticed by a customer.
Saturday, June 5, 2010
Massachusetts bank exec jailed in embezzlement case
A former executive with Seamen's Bank in Provincetown will spend a year in jail after pleading guilty yesterday to embezzling $179,000, allegedly to help her mother.
A tearful and wan Kathleen Morris, 34, of Truro entered guilty pleas yesterday in Barnstable Superior Court to five charges related to the theft.
The charges included larceny over $250 by a single scheme and embezzlement from a bank. There were also 15 counts each of obtaining credit of $250 or more by false financial statements, forgery of a promissory note endorsement and uttering promissory note falsely endorsed.
The bank embezzlement charge held the stiffest potential penalty, 15 years in state prison.
Morris's full sentence, which mirrored what was sought by Cape and Islands First Assistant District Attorney Michael Trudeau, is 2½ years in a house of correction with one year to be served, five years of probation, continued psychiatric counseling and full restitution to Seamen's Bank.
Her attorney, Steven DeYoung of Hyannis had agreed to the probation and restitution, but wanted Morris to be confined at home rather than go to jail.
Trudeau said the state considered leniency in Morris's sentence because she had no prior criminal record.
Morris, who had worked for the bank for 12 years and was a commercial lending vice-president, created 15 false loan applications from 2007 to 2009 in the names of friends and family members, including her mother Jean Bodman. In her position, she was able to approve loans that were under $50,000 without further bank review. The loan applications were made between 2007 and 2009, and the payouts were deposited into accounts that Morriscontrolled, according to court statements.
The scheme was discovered during a routine bank audit after loan applicants received a letter in the mail asking them to confirm their loan, according to court statements. One person contacted that bank to say there was no loan. After conducting an internal investigation, Seamen's president John Roderick, contacted the state police.
Morris took the money because her mother had been victimized financially by a sibling who suffers from drug dependency, said DeYoung in court. "That started a process that got carried away." .
Just prior to sentencing yesterday, DeYoung tried to paint an image of Morris as an altruist new mother and career banker — "a very atypical criminal" — who suffered from depression, battled a weakened resolve and worried about her family.
Judge Gary Nickerson warned DeYoung, however, against painting too rosy a picture given some of the purchases evident in Morris's financial records.
"There was a Caribbean cruise," Nickerson said. "There are motor vehicles."
Yesterday, Morris signed a note that was handed to a representative of the Federal Deposit Insurance Corporation at the court house, confirming a "lifetime ban" for work in the financial industry. She may face civil penalties from the federal agency, according to comments made in court.
She was handcuffed at around 2:30 p.m. and led from the courtroom as family members watched, including her husband, Keith.
Keith Morris has obtained a loan against the family's primary residence at 5A Snows Road in Truro to repay Seamen's $154,000, the sum covered by the bank's insurance, according to statements made in court. A refinancing of the loan will raise the final $25,000 that Seamen's had to pay out as a deductible.
A tearful and wan Kathleen Morris, 34, of Truro entered guilty pleas yesterday in Barnstable Superior Court to five charges related to the theft.
The charges included larceny over $250 by a single scheme and embezzlement from a bank. There were also 15 counts each of obtaining credit of $250 or more by false financial statements, forgery of a promissory note endorsement and uttering promissory note falsely endorsed.
The bank embezzlement charge held the stiffest potential penalty, 15 years in state prison.
Morris's full sentence, which mirrored what was sought by Cape and Islands First Assistant District Attorney Michael Trudeau, is 2½ years in a house of correction with one year to be served, five years of probation, continued psychiatric counseling and full restitution to Seamen's Bank.
Her attorney, Steven DeYoung of Hyannis had agreed to the probation and restitution, but wanted Morris to be confined at home rather than go to jail.
Trudeau said the state considered leniency in Morris's sentence because she had no prior criminal record.
Morris, who had worked for the bank for 12 years and was a commercial lending vice-president, created 15 false loan applications from 2007 to 2009 in the names of friends and family members, including her mother Jean Bodman. In her position, she was able to approve loans that were under $50,000 without further bank review. The loan applications were made between 2007 and 2009, and the payouts were deposited into accounts that Morriscontrolled, according to court statements.
The scheme was discovered during a routine bank audit after loan applicants received a letter in the mail asking them to confirm their loan, according to court statements. One person contacted that bank to say there was no loan. After conducting an internal investigation, Seamen's president John Roderick, contacted the state police.
Morris took the money because her mother had been victimized financially by a sibling who suffers from drug dependency, said DeYoung in court. "That started a process that got carried away." .
Just prior to sentencing yesterday, DeYoung tried to paint an image of Morris as an altruist new mother and career banker — "a very atypical criminal" — who suffered from depression, battled a weakened resolve and worried about her family.
Judge Gary Nickerson warned DeYoung, however, against painting too rosy a picture given some of the purchases evident in Morris's financial records.
"There was a Caribbean cruise," Nickerson said. "There are motor vehicles."
Yesterday, Morris signed a note that was handed to a representative of the Federal Deposit Insurance Corporation at the court house, confirming a "lifetime ban" for work in the financial industry. She may face civil penalties from the federal agency, according to comments made in court.
She was handcuffed at around 2:30 p.m. and led from the courtroom as family members watched, including her husband, Keith.
Keith Morris has obtained a loan against the family's primary residence at 5A Snows Road in Truro to repay Seamen's $154,000, the sum covered by the bank's insurance, according to statements made in court. A refinancing of the loan will raise the final $25,000 that Seamen's had to pay out as a deductible.
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