Former Anchor Bank executive indicted on federal fraud charges

A former long-time executive with Anchor Bank was indicted Wednesday by a federal grand jury for allegedly lying in order to defraud an Anchor subsidiary involved in a Texas industrial park development.

David Weimert, 63, of Madison, who was a senior vice-president in lending administration at Anchor BanCorp Wisconsin and president of Investment Directions Inc., an Anchor BanCorp subsidiary, allegedly devised and took part in a scheme to defraud IDI, according to the U.S. Attorney's Office in Madison.

The grand jury indicted Weimert on six counts of wire fraud, which each carry up to 30 years in prison.

Weimert worked at Anchor from 1991 to 2009. Anchor spokeswoman Jennifer Ranville said that Anchor has cooperated with law enforcement on the matter and will continue to do so.

According to the U.S. Attorney, the indictment alleges that between December 2008 and March 2009, Weimert made material misrepresentations and omissions in order to get an ownership interest in Chandler Creek, a joint venture partnership formed to develop an industrial park in Round Rock, Texas, and to get a 4 percent commission fee as part of the sale of Chandler Creek.

According to the indictment, Weimert falsely told his superiors that the Burke Group, a commercial real estate developer in Costa Mesa, Calif., would buy IDI's share of Chandler Creek, contingent on Weimert purchasing a minority interest of Chandler Creek as part of the deal. In fact, it was Weimert who wanted the minority interest for himself, and not the Burke Group, according to the indictment.

The indictment alleges that as a result of Weimert's actions, IDI's board of directors accepted the Burke Group's offer to buy Chandler Creek. Weimert received a 4.785 percent ownership interest as part of the deal and a 4 percent commission fee, which totaled $311,680, according to the indictment.

Stevens Point, Wisconsin woman faces embezzlement charges in ATM thefts

A Stevens Point woman is facing embezzlement charges in connection with two thefts from ATMS.

Prosecutors say 27 year old Kristen Deadwyler stole $16,000 from the ATMs she was supposed to be filling while she worked at U.S. Bank. According to the complaint, police say Deadwyler admitted to taking the money in March and April last year. Police say she told detectives the money was going to pay off payday loans.

Deadwyler made an initial appearance to six felony counts of theft from a financial institution on Monday. She remains free on a signature bond. A preliminary hearing in the case is set for February 24.

Kiel, Wisconsin woman charged with bank embezzlement

A 27-year-old Kiel woman was charged Thursday with stealing more than $5,500 while working as a bank teller at Community Bank & Trust in the Town of Sheboygan.

Megan A. Murray, of 620 12th St., Lot 2A, is charged with one felony count of theft from a financial institution. She faces up to three years in prison if convicted.

According to a criminal complaint, prior to the alleged theft, Murray had applied for a $5,000 loan while working at the bank, though it had not yet been granted.

Last week, the bank performed a routine audit at the branch and found Murray’s teller drawer short $500, with the same amount found in a bottom drawer beneath a coin tray.

Further audit work revealed an additional $5,540 allegedly missing from Murray’s teller drawer for the month of October.

Murray denied stealing the money when questioned by a Sheboygan County Sheriff’s Office deputy.

A Kenosha, Wisconsin man is sentenced to 35 months in prison for bank fraud

James Scalzo, a 46-year-old man of Kenosha, has been sentenced to 35 months in prison for bank fraud and money laundering schemes.
In January of 2013, Scalzo pled guilty to evidence charging him with a bank fraud scheme and money laundering, and he faced up to 30 years for the bank fraud offense and 20 years on the laundering count.
Between April1, 2008 and October 31, 2009, while employed as a bank officer at Fox River State Bank in Burlington, Wisconsin, and then Consumer's Credit Union in Round Lake Beach, Illinois, Scalzo originated and approved multiple fraudulent loans. He then directed money to be taken from the loans and transferred to accounts in which he had a personal interest.
Some of the loan funds were applied against earlier loans in order to conceal the fraud, with more than $1.4 million in loan funds being involved.
The case not only was an abuse of trust of the financial institutions that employed Scalzo but also caused personal and financial hardship to unknowing citizens. Among the victims was a couple whose home Scalzo had pledged as collateral for one of the fraudulent loans and then allowed to go into foreclosure.
In addition to his 35 months in prison, Scalzo was also ordered to serve three years' supervised release following his time in prison and to pay $200 in special assessments.

Former bank president indicted on 18 counts of fraud

A former Community Bank & Trust president was indicted on 18 counts of bank fraud in U.S. District Court on Tuesday.

David J. Langemak, 41, of Plymouth, faces a maximum of 30 years in prison and a $1 million fine on each count of fraud, according to the U.S. Attorney’s office in Milwaukee.

According to the indictment:

Langemak, while employed as president of the Plymouth branch of Community Bank & Trust, made unauthorized withdrawals totaling approximately $250,000 from the accounts of various bank customers for the benefit of a single, unrelated bank customer.

Community Bank & Trust Chairman and CEO, Tony Jovanovich, said Langemak ceased to be employed by the bank in 2011.

"No customers lost any money," Jovanovich said. He declined to elaborate.

Langemak became president of the Plymouth branch in 1998, according to his LinkedIn profile page.

The case was investigated by the Federal Deposit Insurance Corporation, Office of the Inspector General, the Federal Bureau of Investigation and the Small Business Administration, Office of the Inspector General. The case is being prosecuted by Assistant United States Attorney Carol L. Kraft.

Community Bank & Trust has 11 branches across eastern Wisconsin, including four in Sheboygan.

Former Bank Employee Pleads Guilty to Embezzlement in Wisconsin

A Custer woman has pleaded guilty to embezzling funds from a customers account while employed at a bank in Stevens Point.




At the plea hearing Wednesday, in U.S. District Court in Madison, Elizabeth Simonis admitted that in 2010 while employed at Bulls Eye Credit Union she embezzled $12,000 from a customer's account.



U.S. District Judge Barbara B. Crabb scheduled sentencing for March 23, 2011 at 1:00 p.m. Simonis faces a maximum penalty of 30 years in prison.



The customer was fully reimbursed by Bulls Eye Credit Union.

Menomonie, Wisconsin woman pleads guilty to bank embezzlement

John W. Vaudreuil, United States Attorney for the Western District of Wisconsin, announced that Becky L. Jensen, 51, of Menomonie, Wis., pleaded guilty Thursday in U.S. District Court in Madison to bank embezzlement.




At the plea hearing, Jensen admitted embezzling approximately $28,000 from her former employer, Bremer Bank in Eau Galle, Wis. The charge against Jensen was the result of an investigation conducted by the Eau Claire office of the Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Grant C. Johnson.



U.S. District Judge Barbara B. Crabb scheduled sentencing for March 1, 2011. Jensen faces a maximum penalty of 30 years in prison.

Sun Prairie, Wisconsin Man Charged with Embezzlement

Lance E. Bauer, 26, Sun Prairie, Wis., is charged with bank embezzlement in an


indictment returned by the grand jury yesterday and unsealed today. The indictment alleges that while employed by Park Bank in Madison, Bauer embezzled over $227,760 from that institution.



If convicted, Bauer faces a maximum penalty of 30 years in federal prison. The

charge against him is the result of an investigation conducted by the Madison office of the Federal Bureau of Investigation. The prosecution of this case has been assigned to Assistant U.S. Attorney Grant C. Johnson.

Former Eau Claire bank employee enters plea in embezzlement case

A former bank employee, accused of embezzling around $22,000 from his employer, has reached a plea agreement.Kenneth Hamberger of Green Bay, worked at the Citizens Community Bank in Eau Claire for 15 years. He was responsible for preparing bills on cars, homes and other property the bank financed or repossessed.Hamberger told officers he would pocket some of the money for himself from transactions, and use it on his own expenses, such as child support. He also said he has a drinking problem and was, "...probably drunk most of the time he was at work."Authorities say he has repaid most of the money he embezzled, before entering a plea deal on Monday. He pleaded guilty to felony theft from a financial institution and two misdemeanor theft charges. Hamberger will serve 75 days in jail for the two misdemeanors. For the felony charge, a deferred prosecution was ruled, which means the charge will be dropped if he completes orders from the court for 1.5 years. Besides paying the money back, the agreement also requires Hamberger to complete 120 hours of community service.

Fond du Lac Bank employee accused of embezzlement

A former National Exchange Bank employee has been charged with allegedly stealing $12,000 from the 130 S. Main St. business. Anna M. Tolvstad, 34, of 507 Allen St., is free on a $500 signature bond after she appeared in Fond du Lac County Circuit Court Tuesday. On Jan. 7, a Fond du Lac Police Department detective interviewed the vice president of operations at National Exchange Bank. The employee said the business became aware of the theft on Dec. 31 when another person working Tolvstad’s job in the vault noticed a $10,000 discrepancy while counting the cash, according to the criminal complaint.When Tolvstad came back to work in January, she allegedly admitted to stealing $12,000 between June and December of 2009. She also wrote a statement about the theft, according to the complaint. She then paid back the $12,000, according to the complaint. A preliminary hearing is scheduled for July 16.

Racine, Wisconsin man charged with withdrawing from wrong account, going back for $800 more

A Racine man withdrew $70 from somebody else's account, one number off from his, and returned twice for more money, police said.

He now faces up to 19 years in prison.
Jeff Solis, 27, 206 15th St., was charged with two counts of personal identity theft for financial gain and two counts of fraud against financial institution, according to a criminal complaint. He was given a $3,000 signature bond Tuesday.
The victim reported to Mount Pleasant police on Jan. 8 that unbeknownst to him, a total of $870 in three separate cash withdrawals had been made from his primary savings account at the Educators Credit Union, 1400 N. Newman Road, on Dec. 31.
His account transactions reportedly showed an initial $70 withdrawal at 10:23 a.m., followed by another withdrawal of $500 within minutes and an additional $300 withdrawal almost 20 minutes later.
The initial withdrawal was due to a transposed number, the complaint said. An ECU security officer told police she suspected Solis realized the funds were withdrawn from the wrong account before he returned to make additional withdrawals.
Investigators reportedly identified Solis as the one who made the transactions based on the suspect's photo and driver's license provided by the credit union.
Solis later returned to ECU to make a transaction on his account but left after he was told his account had been frozen until he talked with a security officer, according to the complaint.
In general, anyone making a withdrawal is required to show a valid form of identification, usually a driver's license, said Jim Henderson, ECU senior vice president. Sometimes, he said, tellers may recognize the members and will go ahead and make the transactions without requiring IDs.
If members have security concerns, Henderson noted they can put passwords on their accounts as an additional security check before authorizing withdrawals.
"We take great security lengths to make sure our members' dollars are protected," he said, adding he had not heard of such an incident occurring before.
ECU officials declined to provide additional details regarding the allegations.
If convicted of the four felony counts, Solis faces up to 19 years imprisonment and/or fines up to $40,000

Deal gives missing money back to Bull's Eye credit union in Wisconsin Rapids

MADISON -- Bull's Eye Credit Union will get back nearly $85,000 of the $540,000 authorities say was embezzled by the former president of Rapids Municipal Credit Union.

The award is part of an agreement filed in federal court among the deceased president's former spouse, Bull's Eye and the U.S. government.
Bull's Eye, which acquired the credit union in December 2008 after authorities discovered what they believed to be David K. Henke's embezzlement, had sought an $84,686 Primevest investment account that was held by Henke's former spouse, Laurie, until the government seized it last year. Laurie Henke filed for divorce in January 2009.
Henke was indicted by a federal grand jury with bank fraud and embezzlement. In November, Henke was scheduled for a plea hearing in U.S. District Court in Madison but was found dead of a possible suicide after he failed to make the court appearance.
The government seized the investment account, claiming it was subject to forfeiture as it was directly traceable to Henke's fraud. Laurie Henke also filed claim to it, stating in court documents that she was awarded the account in her divorce from Henke and had rights to it as an innocent spouse.
Bull's Eye claimed that as a successor of Rapids Municipal Credit Union, it was entitled to the return of the money because it not only lost $540,000 to embezzlement but spent $166,000 to investigate Henke's banking activities.
Although the recovery suit had been set for trial in February, the proceeding was postponed and the parties on Monday reached an agreement, which remains pending before District Judge William Conley.
In the agreement, Laurie Henke gave up her claim to the account in exchange for the government agreeing not to seek her 950 shares of Coloma Meats Inc. or any other investment, retirement or bank account, held in either Henke's name, or their heirs or assignees.
U.S. Attorney Elizabeth Altman said Wednesday that although Laurie Henke had nothing to do with the fraud allegations against her ex-husband, she isn't entitled to keep stolen money. In agreeing not to seek any other assets of Henke's, Altman said, "we seized what we thought we legally could at the time of the indictment
Bull's Eye has already received $497,246 from its insurer, according to a FBI agent's affidavit filed with the court.

The affidavit also outlined how Henke was believed to have taken the credit union's money:
Before Henke was dismissed as Rapids Municipal Credit Union president, state banking auditors concluded the credit union had "at the very least some serious record-keeping problems." Bull's Eye acquired the credit union and hired private auditors, who initially determined that $323,000 had been embezzled.
The FBI and Wood County Sheriff's Department Investigator-Sgt. Dean F. Berres began investigating Henke in February 2009.
Henke told them he embezzled the money by writing some Rapids Municipal Credit Union checks to his accounts at Wood Trust Bank and other banks, and also took credit union funds and invested them.
David Stark, Bull's Eye's president, told the FBI that Henke also embezzled by adding credit union funds to 22 loan balances that he converted to his own use.
Stark said Wednesday that he hopes the judge will approve the pending agreement, as it and the insurance settlement have "made all member-victims whole."

Wisconsin Bank Vice President Receives Six-Month Sentence for Misapplying Funds

Stephen P. Sinnott, United States Attorney for the Western District of Wisconsin, announced that Margaret L. Hajdas, 39, Necedah, WI was sentenced today by U.S. District Judge Barbara B. Crabb to six months in prison for misapplying money and credit of the Necedah Bank. The District Court also ordered Hajdas to pay $33,400 in restitution.

Hajdas misapplied bank funds by taking money from the bank by using customers’ lines of credit. Judge Crabb indicated what she found most disturbing was that Hajdas had stolen money from bank customers who had come to trust her.
United States Attorney Sinnott stated that the charges followed an investigation conducted by the Federal Bureau of Investigation. The prosecution of this case has been handled by Assistant U.S. Attorney Timothy M. O'Shea.

Hillsboro, Wisconsin Woman Pleads Guilty to Bank Embezzlement

Stephen P. Sinnott, United States Attorney for the Western District of Wisconsin, announced that Sherry A. Eastman, 62, of Hillsboro, Wis., pleaded guilty yesterday in U.S. District Court in Madison to bank embezzlement. U.S. District Judge Barbara B. Crabb scheduled sentencing for May 25, 2010, at 1:00 p.m. Eastman faces a maximum penalty of 30 years in prison, and the entry of an appropriate restitution order.

At the plea hearing, Eastman acknowledged embezzling approximately $46,000 from the Farmers State Bank in Hillsboro while an employee of the bank. She admitted making unauthorized withdrawals from four customers accounts at the bank.
The charges against Eastman were the result of an investigation conducted by the La Crosse Resident Agency of the Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Grant C. Johnson.