Former bank worker sentenced for embezzlement in Missouri

A Kansas City woman is going to prison for embezzling more than $650,000 for the bank where she worked.

The U.S. Attorney's office says 54-year-old Lisa L. Taylor was sentenced Thursday to six years and six months without parole.

Taylor pleaded guilty in February to defrauding UMB Bank, where she worked as a closing account specialist from May 2006 until October 2010. Eleven of her friends and relatives in Missouri and Kansas also pleaded guilty to taking part in the conspiracy.

Taylor admitted generating 377 fraudulent checks, some of them payable to friends and relatives who cashed the checks and gave Taylor part of the proceeds.

The scheme also involved $97,000 worth of checks made payable to fictitious names. Taylor forged the signatures and deposited the checks into her own bank account.

Kansas City woman charged with embezzling nearly $3 million, causing company to close

 A Kansas City woman is charged with embezzling nearly $3 million from a bank and a company that had to close after declaring bankruptcy.

A federal grand jury indicted 52-year-old Irene Marie Brooner on Tuesday on several counts of wire fraud, bank fraud and money laundering. She made her initial court appearance Tuesday.

Prosecutors say Brooner embezzled close to $2 million while working for Galvmet Inc., a sheet metal fabrication and steel service company that closed earlier this year. She also allegedly embezzled $1.1 million from a bank.

The fraud allegedly occurred for a decade. Prosecutors say Brooner used the money for personal expenses and lavish living, including remodeling and stocking a basement bar in her home, travel, jewelry and spa visits

Ex-UMB Employee Pleads Guilty to Embezzlement

A former employee of UMB Financial (UMBF) in Kansas City, Mo., has pleaded guilty to embezzling more than $650,000 from the company.

Lisa Taylor used her position as a closing account specialist at UMB Bank to create 377 fraudulent checks between May 2006 and October 2010, according to a press release Thursday from the U.S. Attorney's Office in the Western District of Missouri. She admitted to her role in the bank fraud conspiracy in a Kansas City federal court, the release said.

Taylor's job at UMB required her to request refund checks for customers with closed accounts. When a deposit earmarked for a closed account arrived, the money would be deposited into a general account at UMB. Taylor would then request that a refund check be issued from the UMB account and sent to the customer's last known address.

Taylor took advantage of her position by making fraudulent refund requests for checks payable to friends and family members, with whom she split the proceeds, according to the release. She also requested checks payable to names she made up, forged the signatures and deposited the money in her own account, according to the release.

Eleven of Taylor's friends and family members have also pleaded guilty to their roles in the scheme, according to the release.

Taylor is required to pay the United States government $650,659 as part of her plea agreement. She faces up to 30 years in federal prison without parole, a fine of up to $1 million and an order of restitution, according to the release. Her sentencing date has not yet been scheduled.

Former branch manager of Belgrade State Bank indicted

A federal indictment was returned Wednesday naming Sheila Aubuchon as the defendant in an alleged scheme to misdirect funds at Belgrade State Bank for her personal use.

Aubuchon was indicted by a federal grand jury on three felony counts of bank fraud, three felony counts of theft or embezzlement by a bank employee and two felony counts of causing Belgrade Bank to fail to file CTRs.

The case is being investigated by the United States Secret Service and the Internal Revenue Service. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney's Office.

The indictment alleges that Aubuchon forged signatures, altered account numbers and evaded bank procedures in order to conceal her misappropriation of more than $120,000 in funds owned by Belgrade State Bank and its customers.

The indictment also alleges that Aubuchon failed to file currency transaction reports (CTRs) relating to these transactions as required by federal law. The financial crimes allegedly took place in Potosi.

According to the indictment, the former branch manager sought out individuals vulnerable to theft and fraud such as the elderly and recently deceased, according to the grand jury. She kept records in her office reflecting the obituaries of recently deceased individuals, a number of whom became her victims.

Once she picked a victim, she forged their signatures and initials, created false documents reflecting transactions and request never approved by the bank or the customer and modified account information, according to the indictment.

The indictment also accuses Aubuchon of processing transactions of more than $10,000 in cash without completing a currency transaction report as required by federal law.

Aubuchon would alter account numbers to indicate her own personal account number and often conduct her fraudulent activities outside normal business hours, according to the indictment.

If convicted, each count of bank fraud and embezzlement carries a maximum penalty of 30 years in prison. Failure to file a CTR carries a maximum penalty of 10 years in prison. In determining any actual sentence imposed, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

Poplar Bluff bank employee pleads guilty to embezzling in Missouri

A former First Midwest Bank employee in Poplar Bluff, Mo., recently pleaded guilty in federal court in Cape Girardeau to embezzling nearly $400,000 from the institution.

Leslie Ann Eastwood Kirby, who had been the bank's teller supervisor, pleaded guilty as charged Thursday to the felony of theft or embezzlement/misapplication by a bank officer before U.S. District Judge Stephen Limbaugh Jr., according to a clerk for the U.S. District Court.

Kirby, the clerk said, is to appear at 10 a.m. Feb. 18 for sentencing before U.S. District Judge Carol E. Jackson.

The Poplar Bluff woman was accused of taking the funds between Jan. 1, 2007, and March 28.

The indictment alleged Kirby "willfully misapplied or embezzled the sum of approximately $397,000 of the funds, in that (she) wrongfully and without authorization took money that came into her possession as the supervisor of the bank tellers and used it for her own benefit."

According to earlier reports, an internal auditor conducts regular reviews and audits as part of the bank's normal operations, and the discrepancy reportedly was found during one of those reviews. No customer accounts were involved.

Bank officials reported the missing funds to the Poplar Bluff Police Department, and officers conducted a preliminary investigation to ascertain whether an internal theft had occurred.

The FBI at Cape Girardeau subsequently was contacted, and a joint investigation began.

SW MISSOURI BANK MANAGER PLEADS GUILTY TO THEFT

 A former southwest Missouri bank branch manager pleaded guilty to bank fraud in the theft of more than $316,000 from elderly customers' accounts.

Thirty-three-year-old Jennifer Gunter, of Republic, also pleaded guilty Thursday to not reporting the embezzled income on her taxes.

Gunter was the branch manager at the Guaranty Bank in Nixa until she was fired in November 2012.

The U.S. Attorney's office says Gunter admitted that she repeatedly took money from bank accounts of four elderly bank customers and used the money for personal expenses.

Prosecutors say Gunter set the accounts to "do not mail" to prevent the customers from receiving their bank statements and discovering the thefts.

Gunter faces a sentence of up to 33 years without parole, a fine up to $1.1 million and paying restitution.

Gunter waived her right to a grand jury indictment and pleaded guilty in U.S. District Court to bank fraud and filing a false income tax return.  The Internal Revenue Service estimates it’s owed about $50,000 because she under-reported her income from the thefts by $258,000 total, over several tax years.

The plea agreement says Gunter "submitted transaction tickets, withdrawal slips, and cashier’s
checks that withdrew monies from the bank accounts of L.O., G.F., F.F.T., and F.N., which purported to have the signature of the account holder or an authorized signatory  who  approved the transaction and withdrawal of monies." It also says she changed the status of the customers' accounts so they wouldn't get mailed statements, keeping them from discovering the thefts.

The plea agreement doesn't specify what a judge will order Gunter’s sentence to be.  She could get up to 30 years in prison plus a fine up to $1 million for bank fraud, and up to a three-year sentence plus a fine up to $100,000 fine for filing a false return.  Gunter probably will get less than that, however, because she pleaded guilty and didn't force prosecutors to seek an indictment or go to trial.  She could also be ordered to make restitution to the customers, the IRS or both.

The charges filed by the U.S. Attorney’s Office say the thefts happened in Greene and Christian counties, where Gunter worked for Guaranty Bank.   Gunter is not in jail as she awaits her sentencing hearing, which is not scheduled.

Janelle Earley indicted for embezzlement in Missouri

A suburban St. Louis bank employee has been indicted by a federal grand jury for allegedly embezzling more than $100,000.

The indictment of 33-year-old Janelle Marie Earley of O'Fallon, Mo., was announced Wednesday.

Authorities say Earley embezzled the money from St. Johns Bank between 2011 and this year.

Bank exec busted for bailout fraud in Missouri

FROM FORTUNE.COM

 No matter how one might feel about the 2009 bank bailouts, there is one thing I think we can all agree on: Bank executives shouldn't have used TARP money to buy themselves luxury vacation condos.
But that's exactly what Missouri banker Darryl Layne Woods has admitted to having done.
Woods today plead guilty in federal court to having lied to investigators over his use of $381,000 in bailout funds to purchase a waterfront condo in Fort Myers, Fla.
The money was part of nearly $1.04 million provided by the U.S. Treasury Department to Calvert Financial, the holding company for Ashland, Mo.-based Mainstreet Bank. Woods was chairman, president and majority shareholder of Calvert, plus chairman and chief financial officer of Mainstreet Bank.
TARP recipients were required to disclose how the bailout funds were used, but it seems that Woods apparently left out the part about his waterfront hideaway. Probably because it was an illegal misuse of funds. Not surprisingly, he misled federal investigators about the situation when later questioned (until copping to everything today).
He faces up to one year in prison without parole, plus a fine of up to $100,000 and an order of restitution. He also is banned from the financial services business for life.

Columbia Woman Pleads Guilty to Mortgage Fraud, Embezzlement in Missouri

A Columbia woman pleaded guilty in federal court Thursday to charges of bank fraud and money laundering, which were part of a $576,000 mortgage fraud and embezzlemet scheme at the title company where she was employed.

Terri Lynn Johnson, 48, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charges contained in a Dec. 13, 2012 federal indictment.

Johnson was hired for a clerical position with Guaranty Land Title Company in 2001, and was eventually promoted to become the branch manager of the Fulton, Mo. office after the company was acquired by Landchoice Company, LLC. She remained in that position until her termination in 2008.

Johnson admitted that she engaged in a $300,000 mortgage fraud scheme while she was employed as the Fulton branch manager. Johnson refinanced the mortgage on her residence twice. As a result of the false and fraudulent information provided by Johnson, two banks approved mortgage loans, one for $175,000 and the other for $125,000. The combination of those two loans clearly exceeded the appraised value of Johnson's residence, which was used to secure both loans.

Johnson also admitted that she embezzled $276,173 from Landchoice. She diverted income checks from Landchoice into a bank account that had been opened for Guaranty Land Title Company and which her employer didn't know existed. She also diverted escrow funds which had been obtained by Landchoice for loan closings into that account.

Johnson then wrote checks to herself which she deposited into her personal checking account. She wrote checks totaling approximately $59,465 payable to herself, as well as checks to her personal business, which totaled approximately $12,500. Johnson also wrote checks believed to be for her personal use totaling approximately $19,916. In addition, she utilized a debit card issued for the account, which she used to access $184,292 for her personal benefit. The total personal benefit realized by Johnson from this embezzlement scheme is estimated to be approximately $276,173.

Under federal statutes, Johnson is subject to a sentence of up to 40 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a pre-sentence investigation by the U.S. Probation Office.

Ellington, Missouri bank manager sentenced to nearly 5 years for bank fraud

Irvin R. Eddington, Jr., 43, of Ellington, Missouri was sentenced to 57 months in prison on bank fraud and embezzlement charges, involving his issuance of fraudulent letters of credit while he was Vice President and Manager of the Ellington Branch of People’s Community State Bank (PCSB).
In addition to the prison sentence, he was ordered to pay restitution of $1,195,696.

Eddington pleaded guilty in February to one felony count of bank fraud and one felony count of embezzlement by a bank employee

He is accused of issuing more than $1.3 million in fraudulent unsecured irrevocable letters of credit to an associate in the name of PCSB from January 2004 to October 2011. Then, the associate secured loans from other places using the letters of credit as collateral. The associate kept and used the funds from those loans. According to the U.S. Attorney's Office Eastern District of Missouri, Eddington did not have the authority to issue any of those letters of credit and did so without the knowledge or permission of the bank.

Eddington is also accused of not discussing the unauthorized letters when it came up a bank board meetings. The total value of the letters of credit issued and thus the potential loss to the bank for this scheme, was approximately $1,340,896, however, based on loan defaults to date, PCSB is liable for approximately $674,336. Eddington approved a nominee load to two bank customers on March 11, 2010. He reported the loan of $45,000 to the bank, but did report he was receiving the proceeds of the loan. That particular scheme cost the bank $58,500.

From February to October 2011 Eddington created fake PCSB money orders funded by advance from customer line of credit to get cash or pay his bills. According to the U.S. Attorney's Office, Eddington forged the customer's name of customers he knew did not monitor their loan histories and who did not have access to their account online. He would then tell the teller the customer had come into the bank earlier that day and he was handling the transaction for the customer. He also would sometimes deliberately not mail the customers he targeted their bank statements.

In another instance, Eddington did not tell the bank loan committee that one of his associates would be receiving more than $50,000 cash from a $249,000 loan. If they had known that, they would not have approved the loan. However, the loan was approved on August 4, 2011. The collateral for the loan was also misrepresented because the associated provided a fraudulent title insurance policy as part of the loan application.

Poplar Bluff, Missouri bank employee charged with embezzlement

 The FBI arrested a First Midwest Bank employee Friday on suspicion of embezzling nearly $400,000 from the institution.

Bank teller supervisor Leslie Ann Eastwood Kirby, 38, of Poplar Bluff turned herself in to authorities at approximately 8:30 a.m. at the Poplar Bluff Police Department.

She was taken by FBI agents to a federal holding facility, according to Poplar Bluff police chief Danny Whiteley.

Kirby is accused of taking the funds during a period of time ending March 28, according to a copy of an indictment filed with the Southeastern Division of the U.S. District Court's Eastern District.

"There is no evidence that any customer accounts were involved in the theft," First Midwest executive vice president Dale Dickerson said in a statement. "The bank, like all banks, has insurance to cover this type of incident."

The discrepancy was discovered during an internal audit, he said.

The missing funds were reported to police March 28, said Whiteley, who complimented the bank on its assistance and full cooperation with the investigation.

"We were contacted by officials for First Midwest Bank about a discrepancy in their vault. … We did a preliminary investigation and ascertained it was going to be an internal theft, then contacted the FBI in Cape Girardeau," Whiteley said.

A joint investigation between the two agencies led to Kirby's arrest, he said.

The indictment filed by federal prosecutor Morley Swingle said Kirby "willfully misapplied or embezzled the sum of approximately $397,000 of the funds … in that the defendant wrongfully and without authorization took money that came into her possession as the supervisor of the bank tellers and used it for her own benefit."

Montgomery County Bank Embezzlement in Missouri

A Montgomery County woman is indicted after allegedly embezzling money from the bank she managed.
38-year-old Candida Lehnen of Middletown appeared in federal court Wednesday on one count of embezzlement by a bank officer. Prosecutors claim she stole over 90-thousand dollars when she managed Middletown’s branch of American Bank.
Lehnen allegedly used fake information when processing cashier’s checks so she could keep the money herself. Prosecutors also say she used altered debit tickets to get money, and even closed an account belonging to someone who died, then withdrew the money in it.
If she is convicted, Lehnen faces up to 30 years in prison and a fine of up to one million dollars

Eddington Pleads Guilty to Fraud, Embezzlement in Missouri

Irvin R. Eddington Jr., 42, former vice president and manager of the Ellington Branch of Peoples Community State Bank, entered a guilty plea last week in U.S. District Court to charges of bank fraud and embezzlement.
Attorneys say Eddington created fraudulent PCSB money orders in the amount of approximately $49,000 funded by advances from customer lines of credit and forging the customers names to obtain cash or to pay his bills.Also, from January 2004 through October 2011, prosecutors say Eddington created and issued a number of fraudulent unsecured irrevocable letters of credit to an associate in the name of the bank worth approximately $1,340,896.
Based on loan defaults to date, PCSB is liable for approximately $674,336 of the potential $1,340,896 loss.
Sentencing for Eddington has been set for May 20, 2013, by U.S. District Judge Carol E. Jackson. The penalty for each of the two charges is a maximum of 30 years imprisonment and up to $1 million in fines.
The charges were originally filed Sept. 19, 2012, but Eddington’s lawyer filed a motion to dismiss the second count of the indictment.
Judge Jackson referred all pretrial matters in this case to United States Magistrate Judge Lewis M. Blanton in the Cape Girardeau office for determination and recommended disposition, where appropriate.
On Dec. 12, 2012, Judge Blanton filed a report and recommendation with respect to the defendant’s motion to dismiss Count Two of the indictment. The defendant filed timely objections to which the United States has responded.
Magistrate Blanton found, and Judge Jackson agreed in an opinion delivered Feb. 4, that the allegations in Count Two are sufficiently specific to apprise the defendant of the conduct that is deemed unlawful. Further, the factual allegations, if proved, would be sufficient to establish a violation of federal law.
Following the denial of the defense’s motion to dismiss the second charge, Eddington agreed to plead guilty to both charges.
In addition to charges previously described, Eddington also admitted to perpetrating additional fraudulent schemes on PCSB as reported by the Daily American Republic on Friday, March 1.
On March 11, 2010, Eddington, in an effort to circumvent Federal Reserve regulations governing insider lending to bank officers, approved a nominee loan to two customers on the bank for $45,000.
He reported the loan to PCSB; however, did not report he was receiving the proceeds of the loan. The loss to PCSB for this scheme was $58,500.
On Aug. 4, 2011, the PCSB loan committee approved a $249,000 loan to an associate of Eddington, who misrepresented collateral for the loan by providing a fraudulent title insurance policy as part of the loan application.
Finally, when the $249,000 loan was presented for approval, Eddington failed to disclose that the associate would receive $56,114 cash from the loan proceeds.
The loan committee would not have approved the loan had they known the loan was “secure” by different property, the lack of title insurance and the cash payout to the borrower. This loan went into default and was charged off by the bank.

Bank manager pleads guilty to bank fraud, embezzlement charges in Missouri

An Ellington bank manager has pleaded guilty Tuesday to bank fraud and embezzlement charges.
According to the U.S. Attorney's Office, Irvin R. Eddington, Jr., 42, of Ellington, pleaded guilty to bank fraud and embezzlement charges, involving issuing fraudulent letters of credit while he was Vice President and Manager of the Ellington Branch of People's Community State Bank (PCSB).
Attorneys say Eddington created fraudulent PCSB money orders funded by advances from customer lines of credit to get money to pay his bills.
Also, from January 2004 through October 2011, prosecutors say Eddington created and issued a number of fraudulent unsecured irrevocable letters of credit to an associate in the name of the bank worth approximately $1,340,896.
Sentencing has been set for May 20, 2013

Guilty plea in $4.4 million embezzlement in Missouri

A former worker at the Jersey State Bank in Jerseyville faces up to 30 years in federal prison and $1 million in fines now that she has admitted embezzling $4.4 million. Mary Becker, 56, of Jerseyville, pleaded guilty Friday in U.S. District Court to a charge of bank fraud. Authorities say Becker worked at the bank since 1976, holding positions ranging from assistant cashier to executive vice president. The indictment alleged that Becker inflated expenses and electronically transferred money from the bank's accounts to her own. Federal prosecutors are trying to seize Becker's home, two condos near Missouri's Lake of the Ozarks, a 38-foot powerboat and various other investments. The bank's president says Becker resigned in February and no customer accounts were affected.



Read more: http://www.stltoday.com/

Former Missouri Bank President Pleads Guilty

Beth Phillips, United States Attorney for the Western District of Missouri, announced that the former president of Hume Bank in Bates County, Mo., pleaded guilty in federal court today to making false statements to the FDIC as part of a bank fraud scheme that caused such significant losses that the bank was pushed into insolvency.


Jeffrey W. Thompson, 40, of Hume, Mo., pleaded guilty before U.S. Magistrate Judge Sarah W. Hays to the charges contained in a Dec. 1, 2009, federal indictment.

Thompson became president of Hume Bank in 2001. From Jan. 1, 2004, through Aug. 31, 2007, when he left the bank, Thompson concealed problem loans from state and federal bank examiners. Due primarily to loan losses on loans originated and administered by Thompson, in which he masked past due loans by altering loan maintenance records, the bank became insolvent and was closed by the Missouri Division of Finance on March 7, 2008. In order to meet obligations to depositors, the FDIC insurance fund sustained a loss of $4,324,463.

Thompson admitted that he masked past due loans by altering loan maintenance records. For example, past due principal was reduced to zero in 1,584 instances, past due interest was reduced to zero on 1,460 occasions, and 1,445 maturity dates were changed on the loan maintenance reports. The great majority of these changes were not supported by loan modification agreements in bank files. Thompson personally made the majority of the changes. The false loan maintenance reports concealed problem loans from state and federal bank examiners and from the bank’s board of directors.

Thompson also completed false Officer’s Questionnaires, by falsely stating that the bank had no accommodation loans, or nominee loans, and by falsely stating that the bank had no instances of capitalized interest. In truth, Thompson had made accommodation, or nominee loans, to relatives from which he personally profited, and had made loans which capitalized interest.

By pleading guilty today, Thompson agreed to forfeit to the government $300,000, which represents proceeds from the fraud scheme, or his residential property.

Under federal statutes, Thompson is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $1 million and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Kate Mahoney. It was investigated by the Federal Deposit Insurance Corporation and the Federal Bureau of Investigation.

Polo, Missouri Woman Pleads Guilty to $414,000 Bank Theft

Beth Phillips, United States Attorney for the Western District of Missouri, announced that a Polo, Missouri woman pled guilty in federal court today to embezzling more than $414,000 from Bank Northwest, where she was employed in Polo and Hamilton, Missouri.




Laurine K. Calvert, 55, of Polo, waived her right to a grand jury indictment and pleaded guilty before U.S. District Judge Greg Kays to a federal information that charges her with embezzlement by a bank employee.



Calvert admitted that she embezzled $414,124 from Bank Northwest from Feb. 10, 2003, to Feb. 8, 2010. Calvert was employed by Bank Northwest in both Polo and Hamilton as a teller and bank loan secretary.



Calvert took money from five separate customer accounts. She later created four fictitious loans, using part of the funds from these loans to replace the money she had taken from customer accounts. Calvert used the rest of the loan money for her personal benefit, giving some to family members and spending some during her monthly trips to gamble at Kansas City casinos.



Under federal statutes, Calvert is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $1 million and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.



This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the Federal Bureau of Investigation

Former Missouri Mortgage Brokers Sentenced for $1.2 Million Mortgage Fraud Scheme

Beth Phillips, United States Attorney for the Western District of Missouri, announced today that three former mortgage brokers were among five co-defendants sentenced in federal court for their roles in a $1.2 million mortgage fraud scheme.

Charles M. Davis, 35, of Rogersville, Mo., was sentenced by U.S. District Judge Gary A. Fenner on Monday, May 17, 2010, to four years and three months in federal prison without parole. The court also ordered Davis to pay $1,271,590 in restitution. Scott Allen Kassebaum, 42, of Ozark, Mo., was sentenced to two years in federal prison without parole and ordered to pay $209,100 in restitution; his wife, Cheryl Joan Kassebaum, 43, was sentenced to 15 months in federal prison without parole and ordered to pay $497,200 in restitution. Steven Ray Spencer, 49, of Carl Junction, Mo., was sentenced to two years and six months in federal prison without parole and ordered to pay $436,556 in restitution. Shanda Lynn Moore, 45, of Springfield, Mo., was sentenced to three years of probation, including six months of home confinement and a $3,000 fine and restitution of $262,755.
Davis, a former mortgage broker who was the owner of Master Marketing Consultants, pleaded guilty to his participation in two separate conspiracies to obtain mortgage loans for the purchase of homes based on false loan applications. Davis knew that the loan applications he prepared and submitted were false because the loan applications included overstatements of income and understatements or omissions of liabilities, falsely represented that the purchaser/borrower intended to reside in the home to be purchased, and, in some cases, stated a false place of employment for the purchaser/borrower.
A significant portion of the loan proceeds was returned to the purchasers of the homes (who also were the borrowers) without the lender’s knowledge. Davis facilitated these kickbacks to the purchasers by routing the proceeds through Master Marketing Consultants and, in some cases, through Metro Consulting Group, which was owned by the Kassebaums.
The mortgage fraud schemes involved a total of 20 houses with home mortgage loans ranging from approximately $200,000 to $500,000. The amount of loan proceeds returned to the borrowers ranged from less than $30,000 to more than $100,000. Some of the home purchasers subsequently defaulted on the loans, and the homes have been foreclosed or are in the process of being foreclosed.
In addition to the two conspiracy charges, Davis pleaded guilty to two counts of wire fraud and two counts of money laundering.
Scott and Cheryl Kassebaum, former mortgage brokers and co-owners of Metro Consulting Group, pleaded guilty to their roles in one of the mortgage fraud conspiracies with Davis that involved seven houses with home mortgage loans ranging from approximately $200,000 to more than $400,000. The Kassebaums prepared and submitted fraudulent loan applications to lenders and facilitated the return of a significant portion of the loan proceeds to themselves and other purchasers without the lender’s knowledge and outside the closing of the home purchase.
Cheryl Kassebaum also pleaded guilty to one count of wire fraud and one count of money laundering. Scott Kassebaum also pleaded guilty to one count of wire fraud and one count of money laundering.
Spencer pleaded guilty to his role in both of the mortgage fraud conspiracies. In each conspiracy, he was a purchaser and solicited other purchasers for the schemes. Spencer also pleaded guilty to one count of wire fraud and one count of money laundering.
Moore pleaded guilty to her role in one of the mortgage fraud conspiracies with Davis and Spencer. Moore admitted that she provided false employment verification for Spencer and another individual.
This case was prosecuted by Assistant U.S. Attorney Douglas C. Bunch. It was investigated by the Federal Bureau of Investigation and IRS-Criminal Investigation.

Sedalia, Missouri woman pleads guilty in credit union embezzlement case

A Sedalia woman pleaded guilty in federal court Tuesday to stealing $35,000 from customers’ accounts at a credit union where she was employed. Sandra Ann Jeffers, 49, waived her right to a grand jury and pleaded guilty to a federal charge of embezzlement by a credit union employee, according to a news release from the Office of the United States Attorney, Western District of Missouri, in Kansas City.
During an annual audit of Pittsburgh Corning Glassworkers Credit Union in April of 2009, auditors discovered a discrepancy. Jeffers, who was the manager at the credit union, admitted that she had cut checks from various customers’ accounts. Jeffers used credit union checks made out to herself then endorsed and deposited or cashed the fraudulent checks on her account at another credit union, the release stated.
Jeffers admitted that between February 2008 and March 2009 she transferred money from the accounts of four customers on 23 separate occasions. The amounts ranged from $35 to $5,000 for a loss of approximately $35,000. The loss was reimbursed to the four customers’ accounts by the National Credit Union Administration.
Jeffers is subject to a sentence of up to 30 years in federal prison without parole, plus a fine of up to $1 million and an order of restitution.
A sentencing hearing will be scheduled after the completion of a pre-sentence investigation by the United States Probation Office.
The case was investigated by the U.S. Secret Service and the Sedalia Police Department.
The case is being prosecuted by Assistant U.S. Attorney Jim Lynn.

Missouri Bank Teller Busted for Embezzlement

A Missouri bank teller could spend four years in prison for allegedly embezzling more than $80,000 from Commerce Bank depositor accounts.

Sandra Geimer, 37, was indicted March 31 on two counts of felony theft; theft that authorities said totaled about $80,000. The U.S. Attorney's office in St. Louis said Geimer, a resident of Festus, Mo., took money from customer accounts when working as a teller supervisor at a Commerce Bank branch in Tesson Ferry, southwest of St. Louis.
A federal grand jury indicted her on two aggravated identity theft counts, each of which could result in a two-year prison term and a fine of as much as $1 million.
U.S. Attorney Richard Callahan said several of the victims were elderly or disabled, and did not notice the unauthorized withdrawals until well after they occurred. The alleged withdrawals happened between August 2007 and September 2009, Callahan said.
The case underlines an important part of fighting identity theft. Experts say people should check their bank and credit card accounts routinely, watching for any suspicious activity. That allows any possible theft to be detected and stopped more quickly.
Sandra J. Geimer on June 4 pleaded guilty to charges of embezzling more than $80,000 from customer accounts at the Tesson Ferry Road Branch of Commerce Bank. The thefts occurred between August 2007 and September 2009, according to the United States Attorney's Office.

According to court documents, Geimer was employed by Commerce Bank as a teller supervisor at the Tesson Ferry Branch location, where she had routine interaction with Commerce Bank customers and had access to customer accounts.
Geimer accessed customer accounts and fraudulently withdrew, transferred, and disbursed funds from them without their knowledge or consent, sometimes using demand deposit account (DDA) withdrawal debits.
Some customers were elderly or disabled and were less likely to notice the fraudulent account activity in a timely manner. She sometimes transferred money from one customer's account to another customer's account in an attempt to cover up her fraudulent activity.
Geimer, 37, Festus, pleaded guilty to one felony count of theft by a bank employee. She appeared before U.S. District Judge Catherine D. Perry. Sentencing has been set for Sept. 8, 2010.
Bank theft carries a maximum penalty of 30 years in prison and up to a $1 million fine. Restitution is mandatory in this case.