A former employee of the Fifth Third Bank in Lincolnton, NC has been arrested and charged with embezzlement and forgery after taking money from a customer’s account and blaming the fraud on another customer.
Jeffrey Dean Etchison, Jr, 33 years old, reportedly forged a savings account slip and withdrew about $2,000 from an elderly victim’s savings account. Ten days after the fraudulent withdrawal, the elderly customer reported that money had been stolen from his bank account, and the bank called police to investigate.
Etchison reportedly told police that another bank customer had made the illegal withdrawal. Investigators took surveillance footage and began investigating the false suspect. However, when police finally interviewed him, they determined that he was a witness and not the perpetrator.
After police brought Etchison in again for questioning, he reportedly admitted to the embezzlement and forgery.
He was arrested on Tuesday, September 2nd, for identity theft, embezzlement and forgery of an instrument, uttering a forged instrument, and obtaining property under false pretense. He was released from Lincolnton County Jail on a $25,000 bond.
Embezzlement Charges in South Carolina
Embezzlement refers to the theft of money or property by an individual who was trusted and responsible for handling the money or property of another party, a white-collar crime that commonly occurs in corporate settings.
Embezzlement cases are rarely clear-cut, as the accused are the ones expected to have handled the assets that were embezzled. Simple human error or oversights could lead to wrongful embezzlement.
For an individual to be convicted of embezzlement, the prosecution must prove:
1. The defendant manipulated resources illegally
2. The victim entrusted the defendant with these resources that were allegedly embezzled
3. The defendant intended to deprive the owner of these resources
4. The defendant acquired access to these resources through his/her employment.
Embezzlement charges carry severe penalties. The defendant risks ruining his reputation and loss of employment even if they are later found not guilty of the crime. Punishments for those convicted of embezzlement can include fines, imprisonment, probation, payment of compensation and loss of legal rights among other potential punishments.
Showing posts with label North Carolina. Show all posts
Showing posts with label North Carolina. Show all posts
Monday, September 22, 2014
Sunday, February 9, 2014
Seven Falls co-defendant receives sentence reduction in North Carolina
A former bank president convicted of signing off on millions of dollars in illegal loans to support the floundering Seven Falls development received a six-month reprieve in his four-year prison sentence Monday.
In May 2012, George Gordon "Buddy" Greenwood was ordered to serve four years in federal prison after pleading guilty to embezzlement by a bank officer and money laundering charges in June 2011. Senior Judge Henry M. Herlong granted a request from prosecutors to shave six months off his term in exchange for his help with the case in U.S. District Court in Asheville.
In a motion filed Dec. 12, Greenwood's attorney Jason Ferguson argued that a six-month reduction was not a fair reward for his client's cooperation. Greenwood's "cooperation may have resulted in other defendants choosing to plead guilty rather than risk trial and may have resulted in strategic decisions in the case of Keith Vinson," according to the motion.
Vinson, the developer behind Seven Falls, was convicted after a jury trial in October. Four of his co-defendants, Avery Ted "Buck" Cashion III, Raymond "Ray" Chapman, George Gabler and Andrew Hager, reached plea deals with federal prosecutors in the days leading up to the trial.
"Though defendant (Greenwood) is himself financially destitute, his cooperation has provided the victims in this case multiple, lucrative sources of the millions of dollars of additional restitution outstanding in this case," according to the motion.
Ferguson said that in two meetings with federal prosecutors and law enforcement agents, Greenwood "provided verbal information and assisted the government with document review and comprehension in an effort to assist in constructing theories of the case, and presentation of the evidence to laypeople who don't regularly review these financial documents."
Ferguson also argued that despite his client's assistance to the government, Greenwood has "endured exceedingly more harsh conditions while in prison based solely on his decision to cooperate."
He said Greenwood was placed in a minimum security facility in Edgefield, S.C., on June 28, 2012. On Aug. 1, 2012, he was "transported through a number of transition facilities following his restitution proceedings in Asheville." On Aug. 29, 2012, he returned to Edgefield, where he stayed until March 13, 2012.
Following that date, Ferguson said his client was transferred in and out of five other facilities in Georgia and North Carolina "because of his decision to cooperate with the government."
The constant transfers made him subject to strip searches and body cavity searches "on countless occasions," Ferguson said.
In a final plea before the court to extend a greater reduction in Greenwood's sentence, Ferguson argued that his client's punishment is nearly the same of other co-defendants who came to plea deals with attorneys much later in the game.
Aaron Ollis, who served as a real estate appraiser for 25 years in Western North Carolina, and Thomas "Ted" Durham Jr., a former president of Pisgah Community Bank, each pleaded guilty to one count of conspiracy to defraud the U.S. government in September.
In May 2012, George Gordon "Buddy" Greenwood was ordered to serve four years in federal prison after pleading guilty to embezzlement by a bank officer and money laundering charges in June 2011. Senior Judge Henry M. Herlong granted a request from prosecutors to shave six months off his term in exchange for his help with the case in U.S. District Court in Asheville.
In a motion filed Dec. 12, Greenwood's attorney Jason Ferguson argued that a six-month reduction was not a fair reward for his client's cooperation. Greenwood's "cooperation may have resulted in other defendants choosing to plead guilty rather than risk trial and may have resulted in strategic decisions in the case of Keith Vinson," according to the motion.
Vinson, the developer behind Seven Falls, was convicted after a jury trial in October. Four of his co-defendants, Avery Ted "Buck" Cashion III, Raymond "Ray" Chapman, George Gabler and Andrew Hager, reached plea deals with federal prosecutors in the days leading up to the trial.
"Though defendant (Greenwood) is himself financially destitute, his cooperation has provided the victims in this case multiple, lucrative sources of the millions of dollars of additional restitution outstanding in this case," according to the motion.
Ferguson said that in two meetings with federal prosecutors and law enforcement agents, Greenwood "provided verbal information and assisted the government with document review and comprehension in an effort to assist in constructing theories of the case, and presentation of the evidence to laypeople who don't regularly review these financial documents."
Ferguson also argued that despite his client's assistance to the government, Greenwood has "endured exceedingly more harsh conditions while in prison based solely on his decision to cooperate."
He said Greenwood was placed in a minimum security facility in Edgefield, S.C., on June 28, 2012. On Aug. 1, 2012, he was "transported through a number of transition facilities following his restitution proceedings in Asheville." On Aug. 29, 2012, he returned to Edgefield, where he stayed until March 13, 2012.
Following that date, Ferguson said his client was transferred in and out of five other facilities in Georgia and North Carolina "because of his decision to cooperate with the government."
The constant transfers made him subject to strip searches and body cavity searches "on countless occasions," Ferguson said.
In a final plea before the court to extend a greater reduction in Greenwood's sentence, Ferguson argued that his client's punishment is nearly the same of other co-defendants who came to plea deals with attorneys much later in the game.
Aaron Ollis, who served as a real estate appraiser for 25 years in Western North Carolina, and Thomas "Ted" Durham Jr., a former president of Pisgah Community Bank, each pleaded guilty to one count of conspiracy to defraud the U.S. government in September.
Real estate investors and private money lenders Cashion, of Lake Lure, and Chapman, of Brevard, pleaded guilty to one count each of conspiracy to defraud the United States. Ollis, Durham, Cashion and Chapman face up to five years in prison, $250,000 in fines and no more than three years of supervised release for the charge.
In March, co-defendant Andrew Quinn Hager pleaded guilty to one count of conspiracy to commit bank fraud. He faces up to five years in prison and a $250,000 fine on the conspiracy charge, according to court records.
In the end the judge agreed to a six-month reduction. Greenwood is also ordered to repay nearly $9.3 million in restitution in the case.
Tuesday, June 18, 2013
Second Wells Fargo worker accused in Rock Hill bank embezzlement in North Carolina
A second Wells Fargo in Rock Hill employee has been accused of stealing money from the branch three weeks after a federal grand jury indicted her alleged co-conspirator in an embezzlement scheme, according to a federal indictment.
A federal grand jury on Tuesday indicted Tina Shaneka Hall, 33, of Rock Hill, charging her with theft by a bank employee and criminal conspiracy, according to a news release from the U.S. Attorney’s Office in Columbia.
Between last summer and December, Hall and Catawba’s Dionna Shawnte Lowery, 25, conspired to remove $100 and $50 bills from the bank and replace the bills with $1 bills, according to the indictment. They both worked at the remote banking drive-thru branch of Wells Fargo on Cherry Road.
Together, they’re accused of taking more than $1,000 belonging to the bank. If convicted, Hall could face a maximum 30 years in prison, the news release states.
Monday, June 10, 2013
Former bank employee accused of embezzlement in North Carolina
A local bank employee faces felony charges after she allegedly embezzled money from an elderly customer's banking account.
Leeann Allison, 30, of Maggie Valley, who until recently worked at SunTrust bank of Waynesville, is accused of forging a customer's signature and embezzling $5,000.
Ninety-year-old Walter Leonard said he is a longtime client of SunTrust bank.
"She had taken care of me several times when I came in to make withdrawals," Leonard said of Allison.
One day in April, Leonard noticed that $5,000 was drafted from his account as a withdrawal — a transaction he knew he didn't make.
Leonard told police he went to SunTrust on May 12 and spoke with Allison about the issue. In response, she told him that she "would take care of it."
Leeann Allison, 30, of Maggie Valley, who until recently worked at SunTrust bank of Waynesville, is accused of forging a customer's signature and embezzling $5,000.
Ninety-year-old Walter Leonard said he is a longtime client of SunTrust bank.
"She had taken care of me several times when I came in to make withdrawals," Leonard said of Allison.
One day in April, Leonard noticed that $5,000 was drafted from his account as a withdrawal — a transaction he knew he didn't make.
Leonard told police he went to SunTrust on May 12 and spoke with Allison about the issue. In response, she told him that she "would take care of it."
Monday, April 29, 2013
Embezzlement Can Get You In Criminal Trouble With The State Or The Feds
An employee at a Charlotte-area Macy's was recently arrested and charged with embezzling money from her employer. A series of questionable transactions by a department store cashier triggered an investigation by her employer and eventually the Charlotte-Mecklenburg police. According to police, the employee embezzled more than $2,000 from the SouthPark Macy's store.
The cashier had processed refunds for merchandise that had never actually been purchased. According to reports, the employee theft was then completed by putting the refunds onto store gift cards.
According to the Association of Certified Fraud Examiners, businesses average a loss of about seven percent of annual revenue to employee theft. It is no small loss, especially to small businesses. But employees who are wrongly accused of theft or who made an innocent mistake that is interpreted as fraud have even more on the line than the businesses themselves.
Employee theft is a common form of embezzlement and is considered a white collar crime. This type of financial fraud can lead to serious prison sentences, fines and restitution requirements, whether charged as a North Carolina state crime or a federal white collar crime.
Embezzlement Charges In North Carolina
Embezzlement is a crime of misappropriation. It is taking money or property that belongs to someone else with the intention of depriving that person or business of the use of those funds or property. It is different from larceny because it does not require that money or property be obtained illegally to be a criminal act.
For instance, a bank teller is entrusted with the funds at his or her window; the teller is legally entrusted with the cash he or she receives from customers or that is stocked from the bank's vault on a daily basis. However, if the bank teller takes money from the till for personal use, depriving the bank or its members of the use of that money, he or she has committed the crime of embezzlement.
A North Carolina embezzlement charge depends on the value of the funds or property that was embezzled and the relationship of the person who took property or funds for his own use to the true owner.
- Employees, officers or agents of a corporation, clerks, etc. If the value of what was embezzled is $100,000 or more, it is a Class C felony. If under $100,000, it is a Class H felony.
- Treasurers of charitable organizations. If the value of what was embezzled is $100,000 or more, it is a Class C felony. If under $100,000, it is a Class H felony.
- Railroad officers. If the value of what was embezzled is $100,000 or more, it is a Class C felony. If under $100, 000, it is a Class F felony.
- Public employees, including city and state government workers, and public officials. If the value of what was embezzled is $100,000 or more, it is a Class C felony. If under $100, 000, it is a Class F felony.
The felony sentencing structure in North Carolina provides the following punishment ranges for embezzlement for those who have no prior criminal history:
Felony Class Presumptive Sentencing Range
C 58-73 months in prison
F 13-16 months in prison
H 5-6 months in prison or community punishment
In addition, a person convicted of embezzlement will typically be required to pay back the value of the funds or property embezzled. This is referred to as restitution.
Federal Embezzlement Charges
In North Carolina, embezzlement may be charged as either a state white collar crime or a federal white collar crime, depending on the circumstances involved. It can be a simple, low-dollar crime or it can involve a multimillion-dollar scheme.
Federal embezzlement charges may involve direct embezzlement of government funds or property by a government employee or indirect embezzlement of government funds.
As with North Carolina state charges, federal embezzlement charges are dependent upon the person involved in the scheme and the value of the funds or property embezzled. If more than $1,000 is embezzled, the crime is a federal felony punishable by a $250,000 fine and up to 10 years in prison. If $1,000 or less is embezzled, the crime is a federal misdemeanor punishable by a $100,000 fine and up to a year in prison.
A conviction for embezzlement of public funds will typically also be accompanied by an order to pay an amount equal to what was embezzled as restitution.
Interesting Facts About Embezzlement
Embezzling funds from a financial institution such as a bank is both a state and federal crime. If the person involved is an officer or teller at a federally insured bank, he or she may be on the hook for more stringent federal penalties if convicted of embezzlement.
Despite being illegal, money or property gained through embezzlement is taxable. The Internal Revenue Service wants its share of the proceeds of a successful state or federal embezzlement scheme. Failing to pay taxes can get you in trouble with the IRS; however, paying taxes on illegally gotten gains can alert federal authorities to financial fraud. The silver lining? You may be eligible for a tax refund on money paid in if you are ever forced to give back the money or property through restitution.
Sunday, April 21, 2013
Bank employee pleads guilty to embezzlement in North Carolina
Betty Lee Johnson, 40, of Bennettsville, pled guilty Tuesday in federal court to Theft by Bank Employee, according to United States Attorney Bill Nettles.
Johnson worked for First Citizens Bank as a teller in the bank's Clio branch. A surprise audit, conducted on December 15, 2011, revealed that the Johnson's bank drawer and the vault were missing $206,500.00.
The investigation revealed that Johnson had been embezzling money from June 2006 to May 2011.
Nettles stated the maximum penalty Johnson can receive is a fine of one million dollars and/or imprisonment for 30 years, plus a special assessment of $100.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney William E. Day, II of the Florence office handled the case.
Thursday, July 26, 2012
Indian Trail Woman Sentenced to 33 Months in Prison for Wire Fraud and Filing a False Tax Returns in North Carolina
FROM 7THSPACE.COM -
An Indian Trail woman charged with wire fraud and filing a false tax return was sentenced today to serve 33 months in prison and three years of supervised release following incarceration, announced Anne M Tompkins, United States Attorney for the Western District of North Carolina. United States District Court Judge Max O Cogburn, Jr also ordered the defendant to make restitution payments of $727,584 to victim Yamauchi Corporation and $203,725 to the IRS.
United States Attorney Tompkins is joined in making today’s announcement by Jeannine A Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), and Chris Briese, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
In June 2011, Beth Ann Cox, 51, of Indian Trail, NC. was charged with and pled guilty to one count of wire fraud and one count of filing a false income tax return. According to court documents, from 2003 to 2009 Cox engaged in a scheme to defraud her employer, Yamauchi Corporation (“Yamauchi”), where she was employed as an administrative assistant.
Court documents indicate that Cox had full access to Yamauchi’s operating company bank account and handled payroll transactions and money transfers for the company.
Court records indicate that beginning in July 2003, Cox used her access to Yamauchi’s bank account to make unauthorized wire transfers from the company’s account to pay off balances on her personal lines of credit. Those unauthorized wire transfers totaled over $447,000. In addition to the wire transfers, Cox forged company checks made out to her name and, in turn, falsely logged the fraudulent checks as commissions, bonuses, or tuition payments. The forged checks totaled $270,937 payable to Cox.
As part of her plea agreement, Cox has admitted that at no time was she authorized to make those wire transfers or issue those checks. According to court documents and today’s sentencing proceedings, Cox received at least $727,570 from the fraudulent scheme; however, the tax returns Cox filed for the relevant time period did not reflect that additional income.
“Corporate fraud and embezzlement have devastating effects on the financial health of the victim companies. Individuals engaged in such conduct undermine the livelihood of working families in our community. My office is committed to holding these individuals accountable for this serious crime,” said United States Attorney Tompkins.
“Ms.Cox embezzled funds from her employer and then tried to hide the income from the IRS,” said IRS Special Agent in Charge Hammett. “People who attempt to hide income can and will be prosecuted.”
Cox will be allowed to self-report to begin service of her prison term once the Federal Bureau of Prisons has designated a federal facility where she will serve her sentence. All federal sentences are served without the possibility of parole.
The investigation was handled by IRS and FBI. The case was prosecuted by Assistant United States Attorney Mark T Odulio of the United States Attorney’s Office in Charlotte.
An Indian Trail woman charged with wire fraud and filing a false tax return was sentenced today to serve 33 months in prison and three years of supervised release following incarceration, announced Anne M Tompkins, United States Attorney for the Western District of North Carolina. United States District Court Judge Max O Cogburn, Jr also ordered the defendant to make restitution payments of $727,584 to victim Yamauchi Corporation and $203,725 to the IRS.
United States Attorney Tompkins is joined in making today’s announcement by Jeannine A Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), and Chris Briese, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
In June 2011, Beth Ann Cox, 51, of Indian Trail, NC. was charged with and pled guilty to one count of wire fraud and one count of filing a false income tax return. According to court documents, from 2003 to 2009 Cox engaged in a scheme to defraud her employer, Yamauchi Corporation (“Yamauchi”), where she was employed as an administrative assistant.
Court documents indicate that Cox had full access to Yamauchi’s operating company bank account and handled payroll transactions and money transfers for the company.
Court records indicate that beginning in July 2003, Cox used her access to Yamauchi’s bank account to make unauthorized wire transfers from the company’s account to pay off balances on her personal lines of credit. Those unauthorized wire transfers totaled over $447,000. In addition to the wire transfers, Cox forged company checks made out to her name and, in turn, falsely logged the fraudulent checks as commissions, bonuses, or tuition payments. The forged checks totaled $270,937 payable to Cox.
As part of her plea agreement, Cox has admitted that at no time was she authorized to make those wire transfers or issue those checks. According to court documents and today’s sentencing proceedings, Cox received at least $727,570 from the fraudulent scheme; however, the tax returns Cox filed for the relevant time period did not reflect that additional income.
“Corporate fraud and embezzlement have devastating effects on the financial health of the victim companies. Individuals engaged in such conduct undermine the livelihood of working families in our community. My office is committed to holding these individuals accountable for this serious crime,” said United States Attorney Tompkins.
“Ms.Cox embezzled funds from her employer and then tried to hide the income from the IRS,” said IRS Special Agent in Charge Hammett. “People who attempt to hide income can and will be prosecuted.”
Cox will be allowed to self-report to begin service of her prison term once the Federal Bureau of Prisons has designated a federal facility where she will serve her sentence. All federal sentences are served without the possibility of parole.
The investigation was handled by IRS and FBI. The case was prosecuted by Assistant United States Attorney Mark T Odulio of the United States Attorney’s Office in Charlotte.
Sunday, February 13, 2011
Former Bank Of Asheville, North Carolina Head Indicted On Money Laundering Charges
Documents filed in the United States District Court in Asheville show George Gordon Greenwood, former president and CEO of the Bank of Asheville, is charged with money laundering and misapplication by a bank officer.
The indictment alleges Greenwood, while bank president, authorized and made a loan to a straw borrower. A straw borrower is defined as an individual named on the loan application who isn’t the intended recipient of the loan.
The indictment also states Greenwood, after approving the $500,000 loan, took proceeds from the loan and made a series of financial transactions for five different parties. The parties were not named in the indictment.
The indictment goes on to state Greenwood made these transactions to launder money obtained through “theft, embezzlement, or misapplication by bank officers or employee.”
If convicted, at least a portion of Greenwood’s property could be seized.
The indictment alleges Greenwood, while bank president, authorized and made a loan to a straw borrower. A straw borrower is defined as an individual named on the loan application who isn’t the intended recipient of the loan.
The indictment also states Greenwood, after approving the $500,000 loan, took proceeds from the loan and made a series of financial transactions for five different parties. The parties were not named in the indictment.
The indictment goes on to state Greenwood made these transactions to launder money obtained through “theft, embezzlement, or misapplication by bank officers or employee.”
If convicted, at least a portion of Greenwood’s property could be seized.
Thursday, October 21, 2010
Mooresville, North Carolina banker charged with falsifying $1M in loans
A Mooresville community banker has pleaded guilty to giving herself more than $1 million in loans by falsifying loan applications with the names of straw borrowers, according to a plea agreement filed Monday by the U.S. Attorney's Office.Karen Floyd made at least 11 loans to herself worth $1.08 million while she was an executive at Southern Community Bank, according to court records. The loans were made between March 2006 and November 2009.A straw loan is made when the person whose name is on the loan application is not the person who will actually benefit from or pay back the loan. Straw borrowers may or may not know that their names have been used in connection with a loan. The U.S. Attorney's Office didn't say if any of the straw borrowers in the Floyd case knew that their names were being used. It did say Floyd was aided "by others known and unknown to the United States Attorney."Floyd's attorney, Charlotte lawyer Eben Rawls, did not return calls for comment.According to the charge, Floyd, 49, "caused payments to be made" on the straw loans. Authorities didn't specify how the false loans were detected, although in many cases, straw loans are discovered after the death of a person listed as a straw borrower. The FBI, the Federal Deposit Insurance Corp. and the Office of the N.C. Commissioner of Banks are also involved in the investigation.Floyd is charged with one count of "theft/embezzlement/misapplication by (a) bank officer," a charge that carries up to 30 years in prison and up to $1 million in fines. As part of the plea agreement, Floyd agreed to forfeit any property that authorities want to seize to repay the loans. She cannot work again at any bank that is FDIC insured. If jailed, she must participate in the Bureau of Prisons Inmate Financial Responsibility Program.The U.S. Attorney's Office didn't say how Floyd had spent the money. Property records list her as an owner of a house in Salisbury worth $458,000 and a house in Vass worth $106,000.
Since the summer, there have been several charges against former Charlotte-area bankers accused of stealing from their companies or their clients. They range from a former Bank of America branch manager charged with accepting bribes worth $38,000 to a former Wachovia distribution executive who pleaded guilty to embezzling more than $11 million from the bank by falsifying contractor invoices.Floyd became Southern Community's Lake Norman regional executive around August 2006, leading the bank's push into the Charlotte area and working on business development, branch management and retail lending. Before joining Southern Community, she worked at Wachovia and SunTrust, according to the bank's 2006 annual report."Karen is an excellent fit for a leader in the booming Charlotte-Statesville corridor," the bank said at the time.As a regional executive, Floyd served as the bank's face at various community events. Last year, she represented Southern Community at a statewide meeting of the N.C. Center for Nonprofits, according to meeting records, and made an appearance when the bank donated to the local YMCA following the opening of a Mooresville branch.Southern Community's president did not return calls for comment.Southern Community Bank, based in Winston-Salem, is. like many small banks, struggling with troubled loans and low demand for new loans. In the second quarter, the bank lost $371,000 for common shareholders.The bank has 22 branches, mostly in the western half of North Carolina, and about 300 employees, according to the company website. Its motto is "Small Enough to Care." Staff researcher Maria David contributed.
Since the summer, there have been several charges against former Charlotte-area bankers accused of stealing from their companies or their clients. They range from a former Bank of America branch manager charged with accepting bribes worth $38,000 to a former Wachovia distribution executive who pleaded guilty to embezzling more than $11 million from the bank by falsifying contractor invoices.Floyd became Southern Community's Lake Norman regional executive around August 2006, leading the bank's push into the Charlotte area and working on business development, branch management and retail lending. Before joining Southern Community, she worked at Wachovia and SunTrust, according to the bank's 2006 annual report."Karen is an excellent fit for a leader in the booming Charlotte-Statesville corridor," the bank said at the time.As a regional executive, Floyd served as the bank's face at various community events. Last year, she represented Southern Community at a statewide meeting of the N.C. Center for Nonprofits, according to meeting records, and made an appearance when the bank donated to the local YMCA following the opening of a Mooresville branch.Southern Community's president did not return calls for comment.Southern Community Bank, based in Winston-Salem, is. like many small banks, struggling with troubled loans and low demand for new loans. In the second quarter, the bank lost $371,000 for common shareholders.The bank has 22 branches, mostly in the western half of North Carolina, and about 300 employees, according to the company website. Its motto is "Small Enough to Care." Staff researcher Maria David contributed.
Saturday, July 31, 2010
Bank fire, missing cash may be linked in North Carolina
The Rowan County Sheriff’s Office is investigating a report of embezzlement from the Enochville Dollar General Store, located directly beside Community One Bank. A $5,111 cash bank deposit went missing sometime between July 3 and July 6, and was reported Wednesday by Roger Rickard, loss prevention supervisor of Dollar General. The Community One Bank suffered damage from a fire to its deposit box July 6, but no records or cash were destroyed. Richard “Rick” Jurgenson, vice president and director of security for Community One Bank in Enochville, said the July 6 fire was surrounded by “unusual circumstances. ”Capt. John Sifford of the Rowan County Sheriff’s Office said the embezzlement is under investigation.
“One of their (Dollar General’s) deposits was not found at the bank,” Sifford said. “It was supposed to have been made, but was not in the drop box.”Sifford said the embezzlement and fire could be related, and the Sheriff’s Office is “certainly exploring the possibility.”
“One of their (Dollar General’s) deposits was not found at the bank,” Sifford said. “It was supposed to have been made, but was not in the drop box.”Sifford said the embezzlement and fire could be related, and the Sheriff’s Office is “certainly exploring the possibility.”
Saturday, July 10, 2010
Federal case says bank employees played key roles in Charlotte, North Carolina-area fraud schemes
Bribed bank employees were key to the fraudulent mortgages taken out by members of cell No. 2, prosecutors allege in the indictment filed last week.Bribes were not paid to approve any loans. Rather, they were paid to provide false information or verifications for loan applications, usually to banks the accused didn’t work for, prosecutors allege.That part of the operation was led by Landrick McClain, a Maryland resident and owner and chief executive of Credit Risk Re Ltd., a financial-services firm based in Washington, the indictment says.Vic Henson, who was branch manager for Bank of America’s Steele Creek branch, was paid $38,000 in the fall of 2007 for writing a bogus $5 million letter of credit for an unidentified company involved in the scheme, the indictment says.That November, Jamilia Brown, an assistant manager at BofA’s Cotswold Branch, produced another bogus letter of credit and was paid $55,000, prosecutors say.
Bonnie Ramey, an employee at Wachovia’s Ballantyne branch, was paid $9,000 about the same time for forging a letter of credit, the indictment alleges.Another Wachovia employee, Danyelle Eason, is accused of accepting smaller bribes — around $150 — to confirm that “straw buyers” set up by the cell had accounts with balances of $170,000 to $1.5 million to enable the cells to complete some of their mortgage schemes, the indictment says. She received a total of more than $1,000, according to court documents.Neither the indictment nor other documents filed so far in the mortgage investigation list either BofA or Wachovia as being a target for any fraudulent loans.The only bank employee alleged to have profited from fraudulent mortgages taken from her employer is Linda Clarke, who worked for First Tennessee Bank’s Horizon Home Loans division.The indictment says in the summer of 2007 she and her husband received $187,000 in proceeds from a fraudulent $1.4 mortgage issued by First Tennessee.Clarke and her husband helped provide false information for the loan application, the indictment alleges.The bank lost almost $1.5 million on two bogus mortgages that totaled $2.83 million, court documents say.
Bonnie Ramey, an employee at Wachovia’s Ballantyne branch, was paid $9,000 about the same time for forging a letter of credit, the indictment alleges.Another Wachovia employee, Danyelle Eason, is accused of accepting smaller bribes — around $150 — to confirm that “straw buyers” set up by the cell had accounts with balances of $170,000 to $1.5 million to enable the cells to complete some of their mortgage schemes, the indictment says. She received a total of more than $1,000, according to court documents.Neither the indictment nor other documents filed so far in the mortgage investigation list either BofA or Wachovia as being a target for any fraudulent loans.The only bank employee alleged to have profited from fraudulent mortgages taken from her employer is Linda Clarke, who worked for First Tennessee Bank’s Horizon Home Loans division.The indictment says in the summer of 2007 she and her husband received $187,000 in proceeds from a fraudulent $1.4 mortgage issued by First Tennessee.Clarke and her husband helped provide false information for the loan application, the indictment alleges.The bank lost almost $1.5 million on two bogus mortgages that totaled $2.83 million, court documents say.
Tuesday, June 8, 2010
Former North Carolina bank manager charged with embezzling customer's $410,000
When floodwaters invaded Leonard Wilcox's garage in 2006, they left in their wake a sodden, sewage-soaked lump of nearly $500,000 in cash in a home safe, the Dickinson man claims.
The 79-year-old longtime local businessman kept his cash buried under the floor of his garage because he didn't trust banks, a federal prosecutor said.
That flood four years ago, however, sent him to Citizens Bank to exchange his "dirty" money for new bills. He stored the fresh cash beginning in March 2007 in a safety deposit box at Citizens Bank, 84 Court St., Binghamton, court documents indicate.
A few months later, in November 2007, Wilcox claims he tried to get into his safety deposit box but the lock had been changed. When someone used a bank key to open it, all that was left was $74,000 in cash.
Now a former Citizens Bank branch manager is on trial in U.S. District Court on a single count of embezzlement. A jury was picked Monday, followed by opening arguments from the prosecution and the defense. Testimony in the case is expected to last four days.
Thomas Cararo, formerly of Dickinson and now a resident of North Carolina, is charged with stealing $410,000 of Wilcox's money from Citizens Bank when he worked there. He has entered a not guilty plea.
A child of the Depression, Wilcox began his business career early by gathering and selling coconuts in Florida as a 10-year-old, Assistant U.S. Attorney Thomas Walsh said in opening arguments.
Later he ran successful businesses in Binghamton, first an asphalt company -- Wilcox & Son -- and then refurbishing and selling heavy equipment.
Like many of his generation, Wilcox made money but he didn't like to spend it, Walsh said.
Now he's lost his life's savings, the prosecutor said.
"All he ever did was work," Walsh told the jury Monday.
Perhaps, but Wilcox is not naïve when it comes to money, said Lisa Peebles, the federal public defender representing Cararo.
Her contention is Wilcox is making the theft up.
"He's about as dumb as a fox," Peebles said. "When it comes to his money, Mr. Wilcox is no fool."
Peebles said there are no records that show Wilcox walked into Citizens Bank with $484,000 and no record that he rented safety deposit box No. 418.
"Can the government prove (Cararo) had his hands near $410,000?" Peebles asked the jury Monday. "No way."
The prosecution will attempt to show Cararo had money problems, Walsh said. They'll also show that Cararo and family members made thousands in purchases to refurbish two houses in Dickinson in 2006 and 2007.
Still, those purchases don't add up to the $410,000 Cararo is accused of stealing, Peebles countered.
According to Walsh, Wilcox and his daughter, Roxanne, at first tried to clean and dry the cash themselves in 2006. They ended up taking the cash in bundles of $15,000 and $20,000 in November 2006 to the Chenango Bridge branch of Citizens Bank on River Road, where Cararo then worked as branch manager, to exchange it. Later they took it to the bank in Binghamton and put it in the safety deposit box.
At that time, Cararo had been transferred from the Chenango Bridge branch office to the Citizens Bank in downtown Binghamton.
When they first rented safety deposit box 418, Walsh said, Cararo gave keys to Wilcox and his daughter, and kept a third key for himself.
Walsh said the keys given to Wilcox and his daughter didn't match, but Cararo's key matched Wilcox's key.
A federal civil jury in November found Cararo liable for the missing $410,000. Citizens Bank had settled with Wilcox, paying him $150,000 the bank could document using bank records.
The Binghamton office of the FBI began an investigation of Cararo after Wilcox knocked on their office door on Jan. 4, 2008, to report the alleged theft of his money, Walsh said.
Cararo left Citizens Bank in August 2007 to work for Bank of America in North Carolina, Peebles said.
The 79-year-old longtime local businessman kept his cash buried under the floor of his garage because he didn't trust banks, a federal prosecutor said.
That flood four years ago, however, sent him to Citizens Bank to exchange his "dirty" money for new bills. He stored the fresh cash beginning in March 2007 in a safety deposit box at Citizens Bank, 84 Court St., Binghamton, court documents indicate.
A few months later, in November 2007, Wilcox claims he tried to get into his safety deposit box but the lock had been changed. When someone used a bank key to open it, all that was left was $74,000 in cash.
Now a former Citizens Bank branch manager is on trial in U.S. District Court on a single count of embezzlement. A jury was picked Monday, followed by opening arguments from the prosecution and the defense. Testimony in the case is expected to last four days.
Thomas Cararo, formerly of Dickinson and now a resident of North Carolina, is charged with stealing $410,000 of Wilcox's money from Citizens Bank when he worked there. He has entered a not guilty plea.
A child of the Depression, Wilcox began his business career early by gathering and selling coconuts in Florida as a 10-year-old, Assistant U.S. Attorney Thomas Walsh said in opening arguments.
Later he ran successful businesses in Binghamton, first an asphalt company -- Wilcox & Son -- and then refurbishing and selling heavy equipment.
Like many of his generation, Wilcox made money but he didn't like to spend it, Walsh said.
Now he's lost his life's savings, the prosecutor said.
"All he ever did was work," Walsh told the jury Monday.
Perhaps, but Wilcox is not naïve when it comes to money, said Lisa Peebles, the federal public defender representing Cararo.
Her contention is Wilcox is making the theft up.
"He's about as dumb as a fox," Peebles said. "When it comes to his money, Mr. Wilcox is no fool."
Peebles said there are no records that show Wilcox walked into Citizens Bank with $484,000 and no record that he rented safety deposit box No. 418.
"Can the government prove (Cararo) had his hands near $410,000?" Peebles asked the jury Monday. "No way."
The prosecution will attempt to show Cararo had money problems, Walsh said. They'll also show that Cararo and family members made thousands in purchases to refurbish two houses in Dickinson in 2006 and 2007.
Still, those purchases don't add up to the $410,000 Cararo is accused of stealing, Peebles countered.
According to Walsh, Wilcox and his daughter, Roxanne, at first tried to clean and dry the cash themselves in 2006. They ended up taking the cash in bundles of $15,000 and $20,000 in November 2006 to the Chenango Bridge branch of Citizens Bank on River Road, where Cararo then worked as branch manager, to exchange it. Later they took it to the bank in Binghamton and put it in the safety deposit box.
At that time, Cararo had been transferred from the Chenango Bridge branch office to the Citizens Bank in downtown Binghamton.
When they first rented safety deposit box 418, Walsh said, Cararo gave keys to Wilcox and his daughter, and kept a third key for himself.
Walsh said the keys given to Wilcox and his daughter didn't match, but Cararo's key matched Wilcox's key.
A federal civil jury in November found Cararo liable for the missing $410,000. Citizens Bank had settled with Wilcox, paying him $150,000 the bank could document using bank records.
The Binghamton office of the FBI began an investigation of Cararo after Wilcox knocked on their office door on Jan. 4, 2008, to report the alleged theft of his money, Walsh said.
Cararo left Citizens Bank in August 2007 to work for Bank of America in North Carolina, Peebles said.
Monday, May 24, 2010
Former North Carolina Banker Charged In Fraudulent Invoice Scheme That Bilked Wachovia Out Of $11.2 Million Over 9 Years
Terry Scott Welch, 47, of Mooresville, North Carolina, was charged with misappropriating $11.2 million from Wachovia Bank where he had been employed as a vice president in charge of overseeing vendor payments. According to prosecutors, Welch conspired with a series of vendors to submit false invoices for goods and services the bank never received and received kickbacks in exchange. Specifically, Welch was arrainged on charges of mail fraud and tax evasion. Two other co-conspirators, John Cousar Jr., 47, of Albemarle and Delmar Dove, 59, of Charlotte were also charged with mail fraud and tax evasion. Other vendors provided goods and services to Welch, including renovations to his home and his relatives' homes, purchased golf carts, televisions, jet skis and gas grills, among other items. Authorities allege that Welch's scheme spanned 9 years.
Thursday, March 25, 2010
Clients suing Hall, banks in North Carolina
Complaints say KS Bank let Mark Hall deposit checks that weren't his.
Two elderly people are suing former Smithfield investment adviser Mark Hall, seeking to recover the money they claim he stole from them.
In a complaint filed March 16, Verna Mae Hill, 90, of Garner says Hall took $168,176.18 from an annuity account. She names as co-defendants four firms that did business with Hall, including Smithfield-based KS Bank. Hill claims the bank allowed Hall to deposit into his account millions of dollars in checks payable to his clients.
Charles A. Depew, 76, of Wilson filed a similar complaint Friday.
Hall is already facing criminal charges -- 13 counts of embezzlement by an insurance agent and three counts of exploiting the trust of a disabled or elderly person. Prosecutors think Hall took a total of $2.6 million from 13 clients.
But Hill's civil complaint is the first allegation of wrongdoing by the companies involved.
"The common thread in all these 13 victims is that Hall was taking the check to KS Bank, and they weren't paying attention, which is frankly shocking," said Hill and Depew's lawyer, Andy Whiteman. "There wasn't even an effort to forge an endorsement."
Hill's complaint includes copies of deposit slips and notes that Hall was a shareholder in the bank. KS Bank chief executive Harold Keen declined to comment on the complaint, saying he hadn't had time to look at the documents.
Asked about the bank's policy on deposits, Keen said all banks require that checks be made out to the person cashing them.
In addition to KS Bank, Hill is seeking damages from Hartford Life Insurance Co., Cantella & Co. and J.P. Morgan Chase Bank.
The complaint says the accounts in question were Hartford annuities and that J.P. Morgan Chase is that company's bank. Hall's firm, Market Street Advisors, was an affiliate of Boston-based investment company Cantella.
The complaint says Hall visited Hill at her home during the spring of 2009. He asked her to sign annuity-withdrawal forms, which he told her were needed to "reduce the paperwork she would receive," the complaint says. Hill signed the forms but did not receive the entire document, she says.
The forms directed Hartford to withdraw all $168,176.18 from Hill's account and to send the money to her at Hall's office, according to the complaint.
Spokesmen for Cantella and Hartford said their companies couldn't comment on open litigation. Efforts to reach officials J.P. Morgan Chase were unsuccessful.
Whiteman, the attorney, said he will file additional complaints on behalf of three other clients in the coming weeks. Most will involve the same companies, and all will be filed in Wake County Superior Court, he said.
Hall remains in the Johnston County Jail under $100,000 bond. His court-appointed lawyer, Joy Jones, can legally represent him only on his criminal charges.
"He's not going to have money to retain anybody" in the civil case, Jones said.
Two elderly people are suing former Smithfield investment adviser Mark Hall, seeking to recover the money they claim he stole from them.
In a complaint filed March 16, Verna Mae Hill, 90, of Garner says Hall took $168,176.18 from an annuity account. She names as co-defendants four firms that did business with Hall, including Smithfield-based KS Bank. Hill claims the bank allowed Hall to deposit into his account millions of dollars in checks payable to his clients.
Charles A. Depew, 76, of Wilson filed a similar complaint Friday.
Hall is already facing criminal charges -- 13 counts of embezzlement by an insurance agent and three counts of exploiting the trust of a disabled or elderly person. Prosecutors think Hall took a total of $2.6 million from 13 clients.
But Hill's civil complaint is the first allegation of wrongdoing by the companies involved.
"The common thread in all these 13 victims is that Hall was taking the check to KS Bank, and they weren't paying attention, which is frankly shocking," said Hill and Depew's lawyer, Andy Whiteman. "There wasn't even an effort to forge an endorsement."
Hill's complaint includes copies of deposit slips and notes that Hall was a shareholder in the bank. KS Bank chief executive Harold Keen declined to comment on the complaint, saying he hadn't had time to look at the documents.
Asked about the bank's policy on deposits, Keen said all banks require that checks be made out to the person cashing them.
In addition to KS Bank, Hill is seeking damages from Hartford Life Insurance Co., Cantella & Co. and J.P. Morgan Chase Bank.
The complaint says the accounts in question were Hartford annuities and that J.P. Morgan Chase is that company's bank. Hall's firm, Market Street Advisors, was an affiliate of Boston-based investment company Cantella.
The complaint says Hall visited Hill at her home during the spring of 2009. He asked her to sign annuity-withdrawal forms, which he told her were needed to "reduce the paperwork she would receive," the complaint says. Hill signed the forms but did not receive the entire document, she says.
The forms directed Hartford to withdraw all $168,176.18 from Hill's account and to send the money to her at Hall's office, according to the complaint.
Spokesmen for Cantella and Hartford said their companies couldn't comment on open litigation. Efforts to reach officials J.P. Morgan Chase were unsuccessful.
Whiteman, the attorney, said he will file additional complaints on behalf of three other clients in the coming weeks. Most will involve the same companies, and all will be filed in Wake County Superior Court, he said.
Hall remains in the Johnston County Jail under $100,000 bond. His court-appointed lawyer, Joy Jones, can legally represent him only on his criminal charges.
"He's not going to have money to retain anybody" in the civil case, Jones said.
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