Waldbusser sentenced for bank fraud in Iowa

Former Wells Fargo bank manager Nicholas Waldbusser was sentenced Thursday to 21 months in prison for bank fraud.

Judge Sara Darrow said the theater enthusiast's passion for acting likely helped Mr. Waldbusser conceal a $200,000 embezzlement scheme. She described the 26-year-old man as charismatic, well-liked and intelligent -- but also manipulative of people's trust.

"You were able to draw upon your acting skills to deceive other individuals," she told Mr. Waldbusser.

In April, Mr. Waldbusser pleaded guilty in U.S. District Court, Rock Island, to one count of bank fraud in exchange for the dismissal of 14 similar counts. On Thursday he was ordered to repay approximately $197,000 in stolen funds -- the result of 18 months of embezzlement from the Wells Fargo branch at 4218 Avenue of the Cities, Moline, prosecutors said.

As branch supervisor, Mr. Waldbusser kept track of bank funds and was responsible for the audit process, which he manipulated in order to disguise the thefts, prosecutors said.

Calling his actions "a series of almost daily mistakes," Judge Darrow said she felt obliged to use Mr. Waldbusser as an example to deter others from similar crimes. She ordered him to self-report Sept. 22 to start his sentence, adding she would recommend an in-state minimum security men's prison.

Mr. Waldbusser spoke briefly in court to thank family and investigators who worked on the case.

"I have learned my lesson," he said.

At the start of the hearing, prosecuting attorney Don Allegro expressed frustration at what he perceived were excuses -- including depression, anxiety and struggles with self-identity -- given by the defense for Mr. Waldbusser's behavior.

"He lived a lavish lifestyle," Mr. Allegro said, citing drugs, vacations, prostitutes, basement renovations and expensive suits Mr. Waldbusser bought with swindled funds. Mr. Allegro also said authorities found $1,900 in cash under a mattress when they raided Mr. Waldbusser's home.

Mr. Waldbusser may have been a "nice guy" without prior criminal history, Mr. Allegro said. "But how much money do you have to steal before you get sent to prison -- not because you're a bad person, but to send a message?"

Mr. Allegro advocated for a nonspecific amount of prison time. He said he believed that, had Mr. Waldbusser not been caught by Wells Fargo security, the thefts would have continued.

He said Mr. Waldbusser also conspired with a bank teller to help in the scheme, but authorities chose not to prosecute the teller who no longer works at the bank.

Mr. Waldbusser's attorney, Federal Public Defender George Taseff, asked Judge Darrow not to make his client's case about going after "the Enron's and the white-collar guys." That was a fight for lawmakers, he said.

Mr. Taseff said the recent death of Robin Williams renewed a national dialog about depression faced privately by many performers. Mr. Waldbusser had been "living in a way that was destined to crash and burn. It was unstable," he said, adding his client is seeking counseling.

Mr. Taseff scrolled through a slideshow of pictures in the courtroom depicting Mr. Waldbusser in high school and local theater productions. They included a copy of a May 2011 article from The Dispatch/Rock Island Argus in which Mr. Waldbusser was interviewed about his role in a community show.

"I love creating a person that is fictional and that nobody knows," Mr. Waldbusser was quoted as saying. "I love to tell a story; that's what theater is, creating a story and telling it live."

Mason City woman imprisoned for embezzlement

A 54-year-old Mason City woman has been given more than a year in prison for embezzling nearly $70,000 from the bank where she worked as a teller.

Federal prosecutors said Thursday that Margaret "Peggy" Sheese was sentenced in U.S. District Court in Cedar Rapids to 14 months. She was ordered to serve five years of supervised release after she is released from custody and make nearly $72,000 in restitution to the bank and its fraud insurer. She'd pleaded guilty on Aug. 16 to one count of embezzlement.

In the plea agreement, Sheese admitted to making 29 secret withdrawals from accounts belonging to one customer of Northwood State Bank in Mason City between about October 2011 and January. Sheese also admitted stealing $2,000 in cash from the bank in January.

Mason City woman charged with Northwood bank embezzlement

A former employee of Northwood State Bank has been charged in federal court with embezzling $69,000 from the bank.

Margaret Marie Sheese, 56, Mason City, is charged with one count of embezzlement by a bank employee.

According to a court document from the United States District Court for the Northern District of Iowa, between Oct. 3, 2011 and Jan. 15, 2013, Sheese fraudulently withdrew money from the bank for her own purposes.

Sheese will appear in federal court in Cedar Rapids on Aug. 16.

 A 53-year-old Mason City woman faces up to 30 years in prison after pleading guilty to embezzling nearly $70,000 from the bank where she worked.

Officials say Margaret Marie "Peggy" Sheese pleaded guilty Friday in federal court in Cedar Rapids to one count of embezzlement.

In a plea agreement, Sheese admitted to stealing $69,200 from Northwood State Bank in Mason City between about October 2011 and January while she was a teller at the bank.

Authorities say Sheese made 29 secret withdrawals from accounts belonging to a particular bank customer. Officials say she altered the bank's records so that the customer's bank statements were sent to a post office box belonging to Sheese.

Sheese also stole $2,000 in cash from the bank in January.

Stanley pleads guilty to theft/embezzlement in Iowa

Tiffany Ann (Crowell) Stanley pleaded guilty to one count of Theft by Bank Employee Thursday in U.S. District Court.
According to court records, Stanley appeared with her attorney, Joseph J. Hrvol, in front of District Court Judge Celeste F. Bremer and pleaded guilty. The court accepted her plea and sentencing was set for 11 a.m. on Oct. 11, 2013 in front of the Honorable Stephanie M. Rose. Stanley was then released.
An investigation following the reported robbery of the Great Western Bank in Riverton on Nov. 17 led to Stanley’s indictment on March 27.
In the indictment, Stanley was accused of "Theft of funds of the United States by a bank employee," a violation of U.S. Code, Title 18, section 656. The amount of theft listed in the indictment is $25,716.40.
On Nov. 17, Stanley contacted the Fremont County Sheriff Office and reported she had been robbed while opening up the Riverton Great Western Bank around 8:30 a.m.
At that time, Stanley informed deputies a large white male pushed her into the bank as she was unlocking to back door to open the facility. The man then demanded she put money in a bag, and fled the scene on foot with an undisclosed amount of cash.
Stanley described the robber as a "big guy," approximately 6-feet tall, with a goatee. She added the robber was wearing white sneakers, a black hooded sweatshirt, and blue jeans. Stanley received a small bruise, but was otherwise unharmed in the incident.

Ex-banker sentenced for embezzlement in Iowa

A former branch manager of a bank in Ankeny has been sentenced to more than a year in prison for embezzlement.




Dana Schmieding of Cambridge was accused of embezzling money between 2001 and 2008 from U.S. Bank.

Federal prosecutors said she took unauthorized advances from existing consumer loans, originated loans in the names of the bank and bank customers without their knowledge or consent, and accessed established credit lines of various bank customers.



Schmieding pleaded guilty to a charge of embezzlement by a bank employee.



The U.S. attorney’s office said she was sentenced last week to 17 months in prison. Schmieding also was ordered to serve five years of supervised release and to pay restitution of $250,000.