Federal authorities have taken over the case against a James City man accused of running a fraud scheme that cost SunTrust Bank more than $90,000, according to a the Williamsburg-James City Commonwealth's Attorney's Office.
More than three dozen charges against 40-year-old Rajesh Attri that were placed on a General District Court docket Thursday were all dropped. Among them were charges of credit card forgery, three counts of identity theft, 16 counts of obtaining money by false pretenses and 17 counts of issuing bad checks.
Mike Gaten, assistant commonwealth's attorney, said Thursday that a formal criminal charge made by a U.S. Attorney's Office prosecutor had been filed in federal court.
James City police said Attri is accused of paying three women to open bank accounts with small initial deposits, then making numerous fraudulent deposits and writing bad checks to withdraw the money, knowing the funds in the account were insufficient. The alleged incidents occurred between July 18 and Sept. 3, 2013, according to a criminal complaint against Attri.
In one instance noted in the complaint, a $25,000 deposit was made via check to an account opened in a woman's name. It notes the deposit amount was entered as $250, and a "correction credit" was immediately issued by SunTrust under the belief the customer had entered an incorrect amount. The full $25,000 was credited to the account before the check cleared, the document indicates. Additional similar incidents are cited in the complaint.
A man, later identified as Attri, was seen on ATM security video making the deposit, according to the complaint. It adds that Attri admitted to police he made the deposit knowing the check would not clear.
Showing posts with label virginia. Show all posts
Showing posts with label virginia. Show all posts
Friday, September 19, 2014
Monday, July 28, 2014
Ex Credit Union Head Charged with Embezzlement, Bank Fraud, ID Theft in Virginia
A federal grand jury sitting in the United States District Court for the Western District of Virginia in Roanoke has charged the former manager of the Lynrocten Federal Credit Union in Lynchburg (LFCU) with embezzlement, bank fraud and aggravated identity theft charges.
In and indictment returned under seal on June 5, 2014, and unsealed today following the defendant’s initial court appearance, the grand jury has charged Linda Sue Newcomb, 62, of Madison Heights, Virginia, with one count of embezzlement of funds from a federal credit union, four counts of bank fraud, and three counts of aggravated identity theft.
In January 2014, the former head teller of LFCU, Teresa Wieringo Humphries, 58, of Madison Heights, Virginia, waived her right to be indicted and pled guilty to an information charging her with one count of embezzlement by an employee of a federal credit union.
The indictment alleges that in or about 2000, Ms. Newcomb, who was hired by the LFCU in the mid-1980s, and the former head teller at the bank, Teresa Humphries, carried out a scheme to defraud, embezzle, and steal funds from LFCU’s deposits and accounts.
It was part of the scheme that Newcomb and Humphries originated loans in the names of LFCU members without those members’ knowledge or consent. Newcomb and Humphries drafted fictitious loan documentation and approved the fictitious loans in order to make false loans look legitimate.
In addition, the indictment alleges that from on or about October 22, 2009 and continuing to on or about October 6, 2011, Newcomb entered into Loan Participation Agreements with another federal credit union. In furtherance of the loan participation scheme, Newcomb, on behalf of LFCU, sold various fraudulent loans. In order to persuade the partner credit union to enter into the Loan Participation Agreement, Newcomb made various false statements to make the loans involved appear to be authentic and legitimate.
The value of the fraudulent loans involved in the loan participation scheme was in excess of $1 million.
The indictment also alleges that Newcomb and Humphries transferred funds and wrote checks on certain LFCU members’ accounts without their knowledge or consent. At least three different accounts are alleged to have been used by the two defendants. Certain proceeds from the schemes were deposited to the LFCU bank accounts of Newcomb, Humphries, and their family members or were used by the two defendants to make “payments” to other fraudulent loans.
In order to conceal the unauthorized use of LFCU member accounts, and in furtherance of the scheme, Newcomb and Humphries altered and withheld LFCU member statements.
The investigation of the case was conducted by the United States Secret Service, the Federal Bureau of Investigation, the Lynchburg City Police Department, and the Amherst County Sheriff’s Office. Assistant United States Attorneys Anthony Giorno and Daniel Bubar are prosecuting the case for the United States.
In and indictment returned under seal on June 5, 2014, and unsealed today following the defendant’s initial court appearance, the grand jury has charged Linda Sue Newcomb, 62, of Madison Heights, Virginia, with one count of embezzlement of funds from a federal credit union, four counts of bank fraud, and three counts of aggravated identity theft.
In January 2014, the former head teller of LFCU, Teresa Wieringo Humphries, 58, of Madison Heights, Virginia, waived her right to be indicted and pled guilty to an information charging her with one count of embezzlement by an employee of a federal credit union.
The indictment alleges that in or about 2000, Ms. Newcomb, who was hired by the LFCU in the mid-1980s, and the former head teller at the bank, Teresa Humphries, carried out a scheme to defraud, embezzle, and steal funds from LFCU’s deposits and accounts.
It was part of the scheme that Newcomb and Humphries originated loans in the names of LFCU members without those members’ knowledge or consent. Newcomb and Humphries drafted fictitious loan documentation and approved the fictitious loans in order to make false loans look legitimate.
In addition, the indictment alleges that from on or about October 22, 2009 and continuing to on or about October 6, 2011, Newcomb entered into Loan Participation Agreements with another federal credit union. In furtherance of the loan participation scheme, Newcomb, on behalf of LFCU, sold various fraudulent loans. In order to persuade the partner credit union to enter into the Loan Participation Agreement, Newcomb made various false statements to make the loans involved appear to be authentic and legitimate.
The value of the fraudulent loans involved in the loan participation scheme was in excess of $1 million.
The indictment also alleges that Newcomb and Humphries transferred funds and wrote checks on certain LFCU members’ accounts without their knowledge or consent. At least three different accounts are alleged to have been used by the two defendants. Certain proceeds from the schemes were deposited to the LFCU bank accounts of Newcomb, Humphries, and their family members or were used by the two defendants to make “payments” to other fraudulent loans.
In order to conceal the unauthorized use of LFCU member accounts, and in furtherance of the scheme, Newcomb and Humphries altered and withheld LFCU member statements.
The investigation of the case was conducted by the United States Secret Service, the Federal Bureau of Investigation, the Lynchburg City Police Department, and the Amherst County Sheriff’s Office. Assistant United States Attorneys Anthony Giorno and Daniel Bubar are prosecuting the case for the United States.
Sunday, February 9, 2014
Credit union embezzlement threatens family's home in Virginia
A single father, raising two children, could be losing his home because of something he didn't do.
The problem began when a man committed suicide. In a note left behind, he admitted to stealing nearly $10 million from a faith-based credit union.
Christopher Tate is not only raising his own two children, he's helping other kids in his neighborhood, many of whom have a parent behind bars.
Now, he's the one who finds himself in a bind.
"I was shocked. I would never have guessed this would happen," he says.
Tate got a letter telling him he has to find a new place to live. And the clock is ticking.
Turns out his landlord was John Dupree, Jr., manager of the Shiloh Federal Credit Union, a faith-based credit union that had been connected to Alexandria's Shiloh Baptist Church.
The National Credit Union Administration is going after dupree's estate to get the money back.
Last April, the night before he was to meet with federal authorities, Dupree died.
The NCUA lawsuit says this note was found on his computer: "By the time you read this I will have taken my life. I have been stealing money from Shiloh Credit Union for several years now. The guilt is overwhelming and I am too big a coward to face those that I have stolen from. I regret my actions, but it is far too late for forgiveness..."
Tate is not the only victim. The credit union has been shut down, but there were hundreds of members.
The feds are still untangling the homes, cars, and other assets the former manager owned
The problem began when a man committed suicide. In a note left behind, he admitted to stealing nearly $10 million from a faith-based credit union.
Christopher Tate is not only raising his own two children, he's helping other kids in his neighborhood, many of whom have a parent behind bars.
Now, he's the one who finds himself in a bind.
"I was shocked. I would never have guessed this would happen," he says.
Tate got a letter telling him he has to find a new place to live. And the clock is ticking.
Turns out his landlord was John Dupree, Jr., manager of the Shiloh Federal Credit Union, a faith-based credit union that had been connected to Alexandria's Shiloh Baptist Church.
The National Credit Union Administration is going after dupree's estate to get the money back.
Last April, the night before he was to meet with federal authorities, Dupree died.
The NCUA lawsuit says this note was found on his computer: "By the time you read this I will have taken my life. I have been stealing money from Shiloh Credit Union for several years now. The guilt is overwhelming and I am too big a coward to face those that I have stolen from. I regret my actions, but it is far too late for forgiveness..."
Tate is not the only victim. The credit union has been shut down, but there were hundreds of members.
The feds are still untangling the homes, cars, and other assets the former manager owned
Sunday, January 12, 2014
Former Lynchburg credit union teller pleads guilty to embezzlement
A former head teller of the defunct Lynrocten Federal Credit Union pleaded guilty in U.S. District Court on Tuesday to an embezzlement charge prosecutors say contributed to the financial institution’s collapse in the spring of 2013.
Teresa Wieringo Humphries, 58, of Madison Heights, admitted to embezzling more than $1 million from the Lynchburg-based credit union, which closed in May, U.S. Attorney Timothy Heaphy said in a news release.
Humphries had created fraudulent loans and perpetrated check-kiting schemes for more than a decade, Heaphy said. While Humphries stole more than $1 million, he said the total loss to the credit union was more than $7 million.
Humphries participated in a “massive fraud scheme” by falsifying loan documents to steal from her employer, Heaphy said.
“Her brazen and persistent acts of fraud violated the trust placed in her by the Lynrocten Credit Union and its customers,” he said in the release.
The U.S. Attorney’s Office release said Humphries worked with the credit union’s manager in the fraud, which contributed to the ultimate liquidation of the financial institution, located in a small office off Concord Turnpike. The release did not name the manager.
According to search warrant affidavits, Humphries told investigators in interviews in April and May that she and former manager Linda Newcomb had taken loans out in members’ names and deposited the funds in family members’ accounts for a decade.
Humphries later retracted the statement. Newcomb has denied all knowledge of the scheme.
Heaphy’s spokesman, Brian McGinn, said Humphries is the only person who has been charged in connection with the case. He declined to comment further.
Humphries served as the head teller at the Lynrocten Credit Union in Lynchburg since the mid-1980s, according to evidence presented in court. Beginning in 2000 and continuing until the credit union’s liquidation last year, Humphries and the manager carried out several schemes to embezzle and steal funds from the credit union’s deposits through unauthorized and fraudulent origination of loans in the names of credit union members, prosecutors said.
Humphries and the manager also used a check-kiting scheme, which involves passing fraudulent checks with the expectation that enough money will be deposited before the check is cashed, to obtain additional monies and conceal and facilitate the fraudulent scheme.
The money created through the loan and check-kiting schemes was funneled to the Lynrocten Credit Union accounts of Humphries, the manager and their family members. Between 2007 and the credit union’s failure, prosecutors say Humphries personally stole about $3,000 to $4,000 per month that was deposited into the accounts belonging to family members.
The FBI, the U.S. Secret Service and Lynchburg Police Department conducted the investigation, the release said.
At sentencing, Humphries faces a possible penalty of up to 30 years in prison and a fine of up to $1 million.
Teresa Wieringo Humphries, 58, of Madison Heights, admitted to embezzling more than $1 million from the Lynchburg-based credit union, which closed in May, U.S. Attorney Timothy Heaphy said in a news release.
Humphries had created fraudulent loans and perpetrated check-kiting schemes for more than a decade, Heaphy said. While Humphries stole more than $1 million, he said the total loss to the credit union was more than $7 million.
Humphries participated in a “massive fraud scheme” by falsifying loan documents to steal from her employer, Heaphy said.
“Her brazen and persistent acts of fraud violated the trust placed in her by the Lynrocten Credit Union and its customers,” he said in the release.
The U.S. Attorney’s Office release said Humphries worked with the credit union’s manager in the fraud, which contributed to the ultimate liquidation of the financial institution, located in a small office off Concord Turnpike. The release did not name the manager.
According to search warrant affidavits, Humphries told investigators in interviews in April and May that she and former manager Linda Newcomb had taken loans out in members’ names and deposited the funds in family members’ accounts for a decade.
Humphries later retracted the statement. Newcomb has denied all knowledge of the scheme.
Heaphy’s spokesman, Brian McGinn, said Humphries is the only person who has been charged in connection with the case. He declined to comment further.
Humphries served as the head teller at the Lynrocten Credit Union in Lynchburg since the mid-1980s, according to evidence presented in court. Beginning in 2000 and continuing until the credit union’s liquidation last year, Humphries and the manager carried out several schemes to embezzle and steal funds from the credit union’s deposits through unauthorized and fraudulent origination of loans in the names of credit union members, prosecutors said.
Humphries and the manager also used a check-kiting scheme, which involves passing fraudulent checks with the expectation that enough money will be deposited before the check is cashed, to obtain additional monies and conceal and facilitate the fraudulent scheme.
The money created through the loan and check-kiting schemes was funneled to the Lynrocten Credit Union accounts of Humphries, the manager and their family members. Between 2007 and the credit union’s failure, prosecutors say Humphries personally stole about $3,000 to $4,000 per month that was deposited into the accounts belonging to family members.
The FBI, the U.S. Secret Service and Lynchburg Police Department conducted the investigation, the release said.
At sentencing, Humphries faces a possible penalty of up to 30 years in prison and a fine of up to $1 million.
Saturday, November 23, 2013
Vienna Police Investigating Alleged $90,000 Embezzlement Case in Virginia
Vienna Police are investigating the possible embezzlement of $90,000 worth of property from a credit union located in Vienna, according to a news release Friday from police.
The news release states that police are looking into a report of an employee possibly embezzling $90,000 from the Navy Federal Credit Union, located at 820 Follin Lane, SE in Vienna.
Police say that the alleged embezzlement occurred between Dec. 1, 2012 to November.
An employee reported that another employee had been suspected of taking more than $90,000.00 worth of Navy Federal Credit Union property and selling it to another company.
The investigation is ongoing.
The news release states that police are looking into a report of an employee possibly embezzling $90,000 from the Navy Federal Credit Union, located at 820 Follin Lane, SE in Vienna.
Police say that the alleged embezzlement occurred between Dec. 1, 2012 to November.
An employee reported that another employee had been suspected of taking more than $90,000.00 worth of Navy Federal Credit Union property and selling it to another company.
The investigation is ongoing.
Tuesday, October 1, 2013
Former Bank of the Commonwealth Mortgage Lender Sentenced to 8 Years in Prison for Massive Fraud in Virginia
Troy Brandon Woodard, 37, of Norfolk, Virginia, was sentenced today to 8 years in prison, followed by 5 years of supervised release, for conspiracy to commit bank fraud and three counts of unlawful participation in a loan. The Court further ordered Woodard to pay approximately $2.4 million in restitution to the Federal Deposit Insurance Corporation, and to forfeit over $4 million in proceeds from the offense.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office (IRS-CI); Christy L. Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Jon T. Rymer, Inspector General of the Federal Deposit Insurance Corporation (FDIC-OIG); and Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau (FRB-CFPB OIG) made the announcement after sentencing by United States District Judge Raymond A. Jackson.
Woodard was found guilty after a ten-week jury trial on May 24, 2013. Evidence presented at trial demonstrated that Troy Brandon Woodard conspired with this father, Edward J. Woodard, the CEO and former Chairman of the Board of the Bank of the Commonwealth, Stephen G. Fields, a former Executive Vice President and Senior Commercial Loan Officer and numerous troubled customers to defraud the Bank of the Commonwealth (“the Bank”). Evidence introduced during trial established that Brandon Woodard urged his father to request favors from two of the Bank’s largest borrowers, Eric H. Menden and George P. Hranowskyj, in exchange for favorable treatment at the Bank. Facilitated by Edward Woodard, Menden and Hranowskyj obtained fraudulent Bank loans and increases to existing Bank loans to bail out Brandon Woodard’s failed investment properties and to purchase Brandon Woodard’s personal condominium. In the spring of 2010, at the request of Edward Woodard, Menden gave a brown paper bag containing thousands of dollars in cash to Brandon Woodard. Months later, Menden wrote a check for thousands of dollars to Brandon Woodard.
The evidence further demonstrated that Edward J. Woodard provided preferential treatment to Troy Brandon Woodard to the detriment of the Bank. Brandon Woodard convinced his father to pay his personal legal fees related to a failed investment deal from the Bank’s accounts receivable. Edward Woodard lied to regulators and his Board to lease the Bank’s Suffolk branch to a company solely owned by his son, and then spent over $3 million to renovate and construct an extravagant branch on his son’s land. Finally, Brandon Woodard received thousands of dollars in illegal commissions for referring commercial loans to the Bank.
The investigation was conducted by the FBI’s Norfolk Office, Field Office, IRS-CI, SIGTARP, FDIC-OIG, and FRB-CFPB OIG. Assistant United States Attorneys Katherine Lee Martin, Uzo E. Asonye, and Melissa E. O’Boyle prosecuted the case on behalf of the United States
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office (IRS-CI); Christy L. Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Jon T. Rymer, Inspector General of the Federal Deposit Insurance Corporation (FDIC-OIG); and Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau (FRB-CFPB OIG) made the announcement after sentencing by United States District Judge Raymond A. Jackson.
Woodard was found guilty after a ten-week jury trial on May 24, 2013. Evidence presented at trial demonstrated that Troy Brandon Woodard conspired with this father, Edward J. Woodard, the CEO and former Chairman of the Board of the Bank of the Commonwealth, Stephen G. Fields, a former Executive Vice President and Senior Commercial Loan Officer and numerous troubled customers to defraud the Bank of the Commonwealth (“the Bank”). Evidence introduced during trial established that Brandon Woodard urged his father to request favors from two of the Bank’s largest borrowers, Eric H. Menden and George P. Hranowskyj, in exchange for favorable treatment at the Bank. Facilitated by Edward Woodard, Menden and Hranowskyj obtained fraudulent Bank loans and increases to existing Bank loans to bail out Brandon Woodard’s failed investment properties and to purchase Brandon Woodard’s personal condominium. In the spring of 2010, at the request of Edward Woodard, Menden gave a brown paper bag containing thousands of dollars in cash to Brandon Woodard. Months later, Menden wrote a check for thousands of dollars to Brandon Woodard.
The evidence further demonstrated that Edward J. Woodard provided preferential treatment to Troy Brandon Woodard to the detriment of the Bank. Brandon Woodard convinced his father to pay his personal legal fees related to a failed investment deal from the Bank’s accounts receivable. Edward Woodard lied to regulators and his Board to lease the Bank’s Suffolk branch to a company solely owned by his son, and then spent over $3 million to renovate and construct an extravagant branch on his son’s land. Finally, Brandon Woodard received thousands of dollars in illegal commissions for referring commercial loans to the Bank.
The investigation was conducted by the FBI’s Norfolk Office, Field Office, IRS-CI, SIGTARP, FDIC-OIG, and FRB-CFPB OIG. Assistant United States Attorneys Katherine Lee Martin, Uzo E. Asonye, and Melissa E. O’Boyle prosecuted the case on behalf of the United States
Thursday, August 1, 2013
Former Va. bank manager gets 2 years for fraud.
A former Colonial Heights bank manager who stole about $155,000 from customers was sentenced Thursday to two years in federal prison.
U.S. District Judge John Gibney also ordered Shannon S. Hamilton to make restitution to SunTrust bank, which covered the victims' losses, and banned her from ever working for another financial institution.
The Prince George County woman offered a tearful apology before hearing her sentence.
"I lost my perspective and moral grounding," she said. "I live every day thinking about what I've done, and it haunts me."
Hamilton also turned to face a victim's granddaughter who testified against her and said she was "very, very sorry."
Gibney said the apology was one of the most sincere he has heard in court.
"Everyone's sorry when they get caught, but obviously this has touched you deeper than that," the judge told Hamilton.
However, he also noted that Hamilton targeted some vulnerable, elderly customers in a "fairly elaborate" three-year scheme that resulted in four bank employees being fired for following her directions to violate bank policies.
According to court records, the Prince George County woman misappropriated customers' funds while managing the bank branch from February 2008 to November 2011. She used the money for repayment of her own 401k loan and living expenses. She also repaid some victims with money taken from other victims.
U.S. District Judge John Gibney also ordered Shannon S. Hamilton to make restitution to SunTrust bank, which covered the victims' losses, and banned her from ever working for another financial institution.
The Prince George County woman offered a tearful apology before hearing her sentence.
"I lost my perspective and moral grounding," she said. "I live every day thinking about what I've done, and it haunts me."
Hamilton also turned to face a victim's granddaughter who testified against her and said she was "very, very sorry."
Gibney said the apology was one of the most sincere he has heard in court.
"Everyone's sorry when they get caught, but obviously this has touched you deeper than that," the judge told Hamilton.
However, he also noted that Hamilton targeted some vulnerable, elderly customers in a "fairly elaborate" three-year scheme that resulted in four bank employees being fired for following her directions to violate bank policies.
According to court records, the Prince George County woman misappropriated customers' funds while managing the bank branch from February 2008 to November 2011. She used the money for repayment of her own 401k loan and living expenses. She also repaid some victims with money taken from other victims.
Monday, July 15, 2013
Bank employee faces embezzlement, forgery charges in Dickenson County, Virginia
An employee at First Community Bank in Clintwood has been indicted on embezzlement and forgery charges.
Kimberly Cook, of Clintwood, was arrested late last week and charged with three counts of embezzlement under $200 and three counts of forging coin and bank notes, according to online court records. According to the records, the incident which led to her arrest happened in June 2011.
"She's charged with using her position as a bank teller to embezzle money from customers," said Dickenson County Commonwealth's Attorney Joshua Newberry.
Cook's trial has been set for Sept. 12, court records show. She has no prior criminal record in the county.
Ginger Salt, the bank's chief marketing officer, said she couldn't comment on the status of Cook's employment with the bank.
Kimberly Cook, of Clintwood, was arrested late last week and charged with three counts of embezzlement under $200 and three counts of forging coin and bank notes, according to online court records. According to the records, the incident which led to her arrest happened in June 2011.
"She's charged with using her position as a bank teller to embezzle money from customers," said Dickenson County Commonwealth's Attorney Joshua Newberry.
Cook's trial has been set for Sept. 12, court records show. She has no prior criminal record in the county.
Ginger Salt, the bank's chief marketing officer, said she couldn't comment on the status of Cook's employment with the bank.
Monday, July 1, 2013
Former StellarOne bank teller ordered to pay $16,700 in Virginia
A former bank teller was ordered to pay StellarOne $16,700 in restitution in exchange for her guilty plea Friday to a misdemeanor charge of embezzlement, court records show.
Betty F. Edwards, 44, of Waynesboro, is the former head teller at the bank on Lucy Lane in Waynesboro.
The Waynesboro Police Department reported Edwards’ arrest last week.
While Edwards was under investigation, her attorney, Frankie Coyner, and assistant Commonwealth’s Attorney David Ledbetter, reached a plea agreement that brought the probe to a swift end on Friday.
Authorities officially charged Edwards with a felony count of embezzlement, but she was allowed to plead to an amended misdemeanor charge while paying the bank back in full. The entire proceeding took place Friday morning.
Capt. Kelly Walker said it’s unusual to have a suspect charged and adjudicated the same day, but it’s “not unheard of,” and that he’s seen it happen a few times during his law enforcement career.
Coyner did not return a phone call seeking comment.
Court records show the thefts took place between April 2008 and October 2011, when financial discrepancies at the bank were picked up by an audit, according to Ledbetter.
Ledbetter said he opted for a plea deal in the case because pursuing felony charges against Edwards might have proved difficult.
“It would have been an exceptionally complex case to present at trial,” he said.
The prosecutor also noted that StellarOne supported the plea deal.
“The victim was made whole, which is unusual in an embezzlement case,” Ledbetter said.
Asked why Edwards stole from the bank, Ledbetter replied, “I can only speculate as to what her motive was.”
Edwards, who has no criminal history, was given a one-year jail sentence, which was suspended. She has also been placed on one year of unsupervised probation.
Betty F. Edwards, 44, of Waynesboro, is the former head teller at the bank on Lucy Lane in Waynesboro.
The Waynesboro Police Department reported Edwards’ arrest last week.
While Edwards was under investigation, her attorney, Frankie Coyner, and assistant Commonwealth’s Attorney David Ledbetter, reached a plea agreement that brought the probe to a swift end on Friday.
Authorities officially charged Edwards with a felony count of embezzlement, but she was allowed to plead to an amended misdemeanor charge while paying the bank back in full. The entire proceeding took place Friday morning.
Capt. Kelly Walker said it’s unusual to have a suspect charged and adjudicated the same day, but it’s “not unheard of,” and that he’s seen it happen a few times during his law enforcement career.
Coyner did not return a phone call seeking comment.
Court records show the thefts took place between April 2008 and October 2011, when financial discrepancies at the bank were picked up by an audit, according to Ledbetter.
Ledbetter said he opted for a plea deal in the case because pursuing felony charges against Edwards might have proved difficult.
“It would have been an exceptionally complex case to present at trial,” he said.
The prosecutor also noted that StellarOne supported the plea deal.
“The victim was made whole, which is unusual in an embezzlement case,” Ledbetter said.
Asked why Edwards stole from the bank, Ledbetter replied, “I can only speculate as to what her motive was.”
Edwards, who has no criminal history, was given a one-year jail sentence, which was suspended. She has also been placed on one year of unsupervised probation.
Friday, June 7, 2013
New search warrant gives more details in credit union fraud case in Virginia
Investigators have now searched a second residence in connection with the multi-million dollar Lynrocten Federal Credit Union investigation.
A search warrant filed in Roanoke federal court June 3 reveals a home on Churchview Drive in Madison Heights, owned by former Lynrocten teller Teresa Humphries, was searched by the Secret Service on May 28. Contacted by phone Thursday, a family member said Humphries had no comment on the investigation or warrant.
Lynrocten, a small credit union based in Lynchburg, was shut down by the National Credit Union Association in May after police began looking into possible criminal activity. The NCUA became aware of the suspected fraud by April 25 and the United States Secret Service was called in to assist May 7.
Teresa Humphries is one of two women once employed by the now-defunct credit union. Humphries was the bank’s teller and Linda Susan Newcomb, known as Sue, was the bank’s manager.
In late April and again in May, according to court documents, “Humphries admitted that she and Newcomb originated loans in member names without their authorization and thereafter deposited the funds from the various loans into other accounts maintained at Lynrocten FCU,” U.S. Secret Service agent Thomas Fleming wrote in an earlier affidavit.
The affidavit says Humphries “admitted she personally stole $3,000 to $4,000 a month and that she and Newcomb deposited the stolen funds into accounts belonging to their family members.”
On May 14, she recanted the statement.
The same day, documents show Humphries’ daughter, not identified by name, told investigators “her mother had given her approximately $3,000 to $4,000 a month for the past five years” but she did not know the source of the money.
Now investigators have searched the Humphries property and vehicles for evidence of any federal crimes.
Court documents show investigators were searching for evidence of “theft; embezzlement; or misapplication by bank officer or employee of lending credit and insurance institutions” … “false loan and credit applications” … and “aggravated identity theft.”
Among the items taken from the property were a cell phone, numerous documents, computers, credit union correspondence, tax documents, an LFC gift card and billing and retirement statements. Among the items seized was a statement for an account identified as the “Family Friend League Account.” Documents do not explain the significance of that account.
This recent warrant is the second made public in connection with the Lynrocten case. The first was issued in May on a Madison Heights home owned by Newcomb.
No arrests have been made in the case.
According to legal documents, Newcomb has maintained she has no knowledge of the alleged fraud scheme. Documents show over the course of three days in March, a total of $878,600 was deposited into an account of a cleaning business with an address “associated with the credit union manager Linda Susan Newcomb.”
“These high-dollar transactions do not appear to be consistent with a cleaning service,” Fleming wrote in the affidavit. “Similar transactions occurred in April,” and the irregularities could not be explained by the account holder.
Investigators said a preliminary review of property records reveal about 19 properties in the name of Newcomb’s spouse with a tax value of about $1,808,800.
A search of public records shows the deed to at least one piece of property has been shifted between family members three times from 2002 to 2005.
A search warrant filed in Roanoke federal court June 3 reveals a home on Churchview Drive in Madison Heights, owned by former Lynrocten teller Teresa Humphries, was searched by the Secret Service on May 28. Contacted by phone Thursday, a family member said Humphries had no comment on the investigation or warrant.
Lynrocten, a small credit union based in Lynchburg, was shut down by the National Credit Union Association in May after police began looking into possible criminal activity. The NCUA became aware of the suspected fraud by April 25 and the United States Secret Service was called in to assist May 7.
Teresa Humphries is one of two women once employed by the now-defunct credit union. Humphries was the bank’s teller and Linda Susan Newcomb, known as Sue, was the bank’s manager.
In late April and again in May, according to court documents, “Humphries admitted that she and Newcomb originated loans in member names without their authorization and thereafter deposited the funds from the various loans into other accounts maintained at Lynrocten FCU,” U.S. Secret Service agent Thomas Fleming wrote in an earlier affidavit.
The affidavit says Humphries “admitted she personally stole $3,000 to $4,000 a month and that she and Newcomb deposited the stolen funds into accounts belonging to their family members.”
On May 14, she recanted the statement.
The same day, documents show Humphries’ daughter, not identified by name, told investigators “her mother had given her approximately $3,000 to $4,000 a month for the past five years” but she did not know the source of the money.
Now investigators have searched the Humphries property and vehicles for evidence of any federal crimes.
Court documents show investigators were searching for evidence of “theft; embezzlement; or misapplication by bank officer or employee of lending credit and insurance institutions” … “false loan and credit applications” … and “aggravated identity theft.”
Among the items taken from the property were a cell phone, numerous documents, computers, credit union correspondence, tax documents, an LFC gift card and billing and retirement statements. Among the items seized was a statement for an account identified as the “Family Friend League Account.” Documents do not explain the significance of that account.
This recent warrant is the second made public in connection with the Lynrocten case. The first was issued in May on a Madison Heights home owned by Newcomb.
No arrests have been made in the case.
According to legal documents, Newcomb has maintained she has no knowledge of the alleged fraud scheme. Documents show over the course of three days in March, a total of $878,600 was deposited into an account of a cleaning business with an address “associated with the credit union manager Linda Susan Newcomb.”
“These high-dollar transactions do not appear to be consistent with a cleaning service,” Fleming wrote in the affidavit. “Similar transactions occurred in April,” and the irregularities could not be explained by the account holder.
Investigators said a preliminary review of property records reveal about 19 properties in the name of Newcomb’s spouse with a tax value of about $1,808,800.
A search of public records shows the deed to at least one piece of property has been shifted between family members three times from 2002 to 2005.
Tuesday, May 21, 2013
4 ex-Virginia bank execs face jury in $71 million embezzlement case
Federal court jurors in Norfolk are set to continue their deliberations in the trial of four former Bank of Commonwealth executives and a developer accused of conspiring to defraud the bank out of $71 million.
The Virginian-Pilot reports that the jury met briefly on Friday before breaking for the weekend. They resume deliberations Monday.
The defendants include the former bank president and CEO, two former vice presidents and a mortgage specialist. A developer is also a defendant.
A defense attorney called the case "the silliest bank fraud that ever existed."
A prosecutor countered that the fraud was tantamount to opening the vault and handing out millions.
Jurors' deliberations followed nine weeks of testimony.
Thursday, April 4, 2013
Witness: Embezzlement suspicions didn't halt loans in Virginia
Bank of the Commonwealth continued making loans
to two big borrowers after one of them told a bank official that he
suspected his business partner of embezzling $3 million in loan funds, according
to testimony Wednesday in a weekslong fraud trial.
George Hranowskyj and his partner, Eric Menden, received some $40 million in loans from the Norfolk-based bank for their real estate business in the years leading up to the bank's collapse in 2011. They are serving federal prison terms after pleading guilty to fraud charges last year.
Now the two are star witnesses in a trial in U.S. District Court in which five defendants, including top bank officials, are charged with conspiring to defraud the bank out of $71 million.
Hranowskyj testified Wednesday that in January 2009, he went to Stephen Fields, a bank vice president, with his suspicions that Menden had been siphoning money from construction loans the two had received.
Fields, one of the defendants in the case, was the loan officer on most of Menden's and Hranowskyj's business deals.
Hranowskyj said he laid out his suspicions in a letter to Fields, which he hand-delivered in his bank office and watched as Fields read it.
"He looked a little bit shocked," Hranowskyj said. "He slid the letter back to me and told me that if he were to go forward with it, it would bring down my economic world."
Hranowskyj said he then took the letter back and put it in his pocket. He said his suspicions about embezzlement by his partner eventually led to a bitter split between the two.
Meanwhile, the bank continued to extend millions of dollars in loans to the pair, Hranowskyj said, including $1.2 million to buy a beach house on the Outer Banks.
Menden testified earlier in the trial that he and his partner both took hundreds of thousands of dollars from construction loans for their personal use.
Hranowskyj acknowledged on cross-examination that Fields never asked him to hide anything to get a loan and on some occasions advised him against making questionable investments.
Another prosecution witness, Kevin Roberts, a former loan officer at the bank, described a $1.3 million loan to Dr. Nickolas Pezzella, a Chesapeake physician, for the purchase of three bank-owned properties.
Pezzella is Menden's cousin. Menden testified earlier that he and his partner bought bank-owned properties as a favor to get them off the bank's list of troubled assets. When he reached his legal borrowing limit, Menden said, he used straw buyers such as Pezzella, who were buyers in name only. Pezzella has not been accused of any wrongdoing.
In return for doing such favors for the bank, Menden and Hranowskyj have testified, they expected and received favorable treatment, including low interest rates, loans with no money down, and tolerance of late payments and overdrawn accounts.
Roberts testified that he was assigned to the Pezzella loan at the direction of Fields and another bank vice president, Simon Hounslow, also a defendant in the case.
He said that at Menden's request, the Pezzella loan was structured so that the entire amount - including funds intended for rehabilitation of the properties - was paid out at closing. That was unusual, he said: Normally, rehabilitation funds would be paid out as the work was done.
The loan later drew scrutiny from federal bank examiners, he said.
At one point, Roberts said, Hounslow called a meeting and demanded to know: "Who instructed you to do the loan this way?"
Roberts said he responded: "You did."
Roberts testified that he was subsequently fired by Hounslow.
Another government witness, Charlene Spadaccini-Moye, a former loan assistant at the bank, described processing favorable modifications to loans for the foundering real estate investments of Brandon Woodard, the son of bank President and CEO Edward Woodard Jr.
Both Woodards are defendants in the case.
The loan modifications included a two-year extension, a lower interest rate and an increase in the principal to cover payment of back taxes, insurance and escrow reserves. The latter provision was unique in her experience, Spadaccini-Moye said.
Testimony in the case continues today.
George Hranowskyj and his partner, Eric Menden, received some $40 million in loans from the Norfolk-based bank for their real estate business in the years leading up to the bank's collapse in 2011. They are serving federal prison terms after pleading guilty to fraud charges last year.
Now the two are star witnesses in a trial in U.S. District Court in which five defendants, including top bank officials, are charged with conspiring to defraud the bank out of $71 million.
Hranowskyj testified Wednesday that in January 2009, he went to Stephen Fields, a bank vice president, with his suspicions that Menden had been siphoning money from construction loans the two had received.
Fields, one of the defendants in the case, was the loan officer on most of Menden's and Hranowskyj's business deals.
Hranowskyj said he laid out his suspicions in a letter to Fields, which he hand-delivered in his bank office and watched as Fields read it.
"He looked a little bit shocked," Hranowskyj said. "He slid the letter back to me and told me that if he were to go forward with it, it would bring down my economic world."
Hranowskyj said he then took the letter back and put it in his pocket. He said his suspicions about embezzlement by his partner eventually led to a bitter split between the two.
Meanwhile, the bank continued to extend millions of dollars in loans to the pair, Hranowskyj said, including $1.2 million to buy a beach house on the Outer Banks.
Menden testified earlier in the trial that he and his partner both took hundreds of thousands of dollars from construction loans for their personal use.
Hranowskyj acknowledged on cross-examination that Fields never asked him to hide anything to get a loan and on some occasions advised him against making questionable investments.
Another prosecution witness, Kevin Roberts, a former loan officer at the bank, described a $1.3 million loan to Dr. Nickolas Pezzella, a Chesapeake physician, for the purchase of three bank-owned properties.
Pezzella is Menden's cousin. Menden testified earlier that he and his partner bought bank-owned properties as a favor to get them off the bank's list of troubled assets. When he reached his legal borrowing limit, Menden said, he used straw buyers such as Pezzella, who were buyers in name only. Pezzella has not been accused of any wrongdoing.
In return for doing such favors for the bank, Menden and Hranowskyj have testified, they expected and received favorable treatment, including low interest rates, loans with no money down, and tolerance of late payments and overdrawn accounts.
Roberts testified that he was assigned to the Pezzella loan at the direction of Fields and another bank vice president, Simon Hounslow, also a defendant in the case.
He said that at Menden's request, the Pezzella loan was structured so that the entire amount - including funds intended for rehabilitation of the properties - was paid out at closing. That was unusual, he said: Normally, rehabilitation funds would be paid out as the work was done.
The loan later drew scrutiny from federal bank examiners, he said.
At one point, Roberts said, Hounslow called a meeting and demanded to know: "Who instructed you to do the loan this way?"
Roberts said he responded: "You did."
Roberts testified that he was subsequently fired by Hounslow.
Another government witness, Charlene Spadaccini-Moye, a former loan assistant at the bank, described processing favorable modifications to loans for the foundering real estate investments of Brandon Woodard, the son of bank President and CEO Edward Woodard Jr.
Both Woodards are defendants in the case.
The loan modifications included a two-year extension, a lower interest rate and an increase in the principal to cover payment of back taxes, insurance and escrow reserves. The latter provision was unique in her experience, Spadaccini-Moye said.
Testimony in the case continues today.
Tuesday, January 29, 2013
Former bank teller indicted on embezzlement charge in Virginia
A grand jury has indicted Vickie Lynn Greer Parker on a charge of embezzling more than $200 from Grundy National Bank.
She is the wife of longtime Washington County Treasurer Fred W. Parker and worked at the bank’s Abingdon branch until May 2012, court documents state.
"I’m hurt and I’m embarrassed,” Fred Parker, the county’s tax collector for the last 25 years, said of the charge in a telephone interview Monday.
He said his wife was a teller at the branch for about three or four years.
Vickie Parker did not return a request for comment.
Documents filed in Washington County Circuit Court offer scant details about the single embezzlement charge, which carries as much as 20 years in prison.
The indictment states only that she took money around May 2, 2012. That’s about the time she left the job, according to the bail determination checklist filled out by a magistrate.
A grand jury indicted Vickie Parker on Jan. 22 and she was charged two days later, court documents show.
In the bail checklist, Magistrate Mary Johanna Hanzlik wrote that Vickie Parker has no financial resources from her former bank job and is not currently employed, but that her treasurer husband makes $90,000 annually.
She was released on a $3,500 unsecured bond, court records show.
An official at Grundy National Bank had little to say about the investigation.
“That’s an ongoing thing and we’re not allowed to talk about it at this time,” said a man who answered the phone at the Abingdon branch. He did not give his name.
Fred Parker said he hopes the truth will come out in court.
“All we can do is let the process work itself out,” he said.
She is the wife of longtime Washington County Treasurer Fred W. Parker and worked at the bank’s Abingdon branch until May 2012, court documents state.
"I’m hurt and I’m embarrassed,” Fred Parker, the county’s tax collector for the last 25 years, said of the charge in a telephone interview Monday.
He said his wife was a teller at the branch for about three or four years.
Vickie Parker did not return a request for comment.
Documents filed in Washington County Circuit Court offer scant details about the single embezzlement charge, which carries as much as 20 years in prison.
The indictment states only that she took money around May 2, 2012. That’s about the time she left the job, according to the bail determination checklist filled out by a magistrate.
A grand jury indicted Vickie Parker on Jan. 22 and she was charged two days later, court documents show.
In the bail checklist, Magistrate Mary Johanna Hanzlik wrote that Vickie Parker has no financial resources from her former bank job and is not currently employed, but that her treasurer husband makes $90,000 annually.
She was released on a $3,500 unsecured bond, court records show.
An official at Grundy National Bank had little to say about the investigation.
“That’s an ongoing thing and we’re not allowed to talk about it at this time,” said a man who answered the phone at the Abingdon branch. He did not give his name.
Fred Parker said he hopes the truth will come out in court.
“All we can do is let the process work itself out,” he said.
Monday, September 19, 2011
Former Harrisonburg, Virginia Businessman Indicted on 24 Charges
A Harrisonburg man is facing 24 fraud-related charges following an indictment by a Federal Grand Jury.
Russell Kinnard Henry, Jr., 59, was charged with eight counts of bank fraud, eight counts of theft, the embezzlement or misapplication by a bank officer and eight counts of making a false statement for the purpose of influencing a financial institution.
Henry is the former City/Community Executive and Senior Vice President of FNB Southeast.
According to the indictment, between May 2003 and June 2005, Henry misrepresented himself to be his Alzheimer’s Disease stricken mother, Mary Henry, in loan documentation in order to secure lines of credit in his mother’s name.
The applications for credit were made to the defendant’s employer, FNB Southeast.
The defendant did not disclose the nature of his relationship on the loan applications to FNB Southeast.
In numerous fraudulent applications allegedly filed by Henry, the defendant falsely stated that his mother was the one making the application and misrepresented her annual income.
He also may have acted as the loan officer for each application and approved every loan himself.
Henry was fraudulently issued $1,910,101 in loans in his mother’s name.
The indictment alleges that Henry then withdrew money from the loan accounts in order to pay his mortgage and real estate taxes.
He also allegedly used the money to purchase a Dodge Durango, Coca Cola memorabilia and Petro signs.
Some of the alleged withdraws came following the May 25, 2005 death of his mother, and loan recipient, Mary Henry.
If convicted, the maximum penalty faced by the defendant at sentencing is 30 years incarceration and/or a fine of up to $1 million on each of the 24 counts.
The FBI conducted the investigation.
Russell Kinnard Henry, Jr., 59, was charged with eight counts of bank fraud, eight counts of theft, the embezzlement or misapplication by a bank officer and eight counts of making a false statement for the purpose of influencing a financial institution.
Henry is the former City/Community Executive and Senior Vice President of FNB Southeast.
According to the indictment, between May 2003 and June 2005, Henry misrepresented himself to be his Alzheimer’s Disease stricken mother, Mary Henry, in loan documentation in order to secure lines of credit in his mother’s name.
The applications for credit were made to the defendant’s employer, FNB Southeast.
The defendant did not disclose the nature of his relationship on the loan applications to FNB Southeast.
In numerous fraudulent applications allegedly filed by Henry, the defendant falsely stated that his mother was the one making the application and misrepresented her annual income.
He also may have acted as the loan officer for each application and approved every loan himself.
Henry was fraudulently issued $1,910,101 in loans in his mother’s name.
The indictment alleges that Henry then withdrew money from the loan accounts in order to pay his mortgage and real estate taxes.
He also allegedly used the money to purchase a Dodge Durango, Coca Cola memorabilia and Petro signs.
Some of the alleged withdraws came following the May 25, 2005 death of his mother, and loan recipient, Mary Henry.
If convicted, the maximum penalty faced by the defendant at sentencing is 30 years incarceration and/or a fine of up to $1 million on each of the 24 counts.
The FBI conducted the investigation.
Ex-SW Va. bank teller gets four years in fraud
A former bank teller in Southwest Virginia was sentenced to four years in prison for bank fraud, embezzlement, credit-card fraud and identity theft.
The U.S. Attorney's Office said Amber Renee Franks, 33, of Coeburn was sentenced Friday in federal court in Big Stone Gap. She also was ordered to pay more than $35,000 in restitution to her victims. A jury convicted her on 13 counts in May. According to evidence, Franks fraudulently used two credit cards in the names of her adopted father and deceased mother.
The part-time teller at the Coeburn BB&T Bank branch also forged balance transfer checks using her deceased mother's name and drafted fraudulent documents to withdraw nearly $32,000 from the account of an elderly customer and his deceased wife.
The U.S. Attorney's Office said Amber Renee Franks, 33, of Coeburn was sentenced Friday in federal court in Big Stone Gap. She also was ordered to pay more than $35,000 in restitution to her victims. A jury convicted her on 13 counts in May. According to evidence, Franks fraudulently used two credit cards in the names of her adopted father and deceased mother.
The part-time teller at the Coeburn BB&T Bank branch also forged balance transfer checks using her deceased mother's name and drafted fraudulent documents to withdraw nearly $32,000 from the account of an elderly customer and his deceased wife.
Former bank teller charged in Staunton, Virginia
A former teller at SunTrust bank was arrested by police Monday and charged with stealing $4,806, according to the Staunton Police Department.
Catherine McEwing, 25, faces a felony charge of embezzlement.
Police said the alleged theft of the cash took place between June 14 and July 15 at the SunTrust bank located on Statler Boulevard inside the Kroger supermarket. The arrest followed a “surprise audit,” said Staunton police spokeswoman Lisa Klein.
McEwing is free on bond.
Catherine McEwing, 25, faces a felony charge of embezzlement.
Police said the alleged theft of the cash took place between June 14 and July 15 at the SunTrust bank located on Statler Boulevard inside the Kroger supermarket. The arrest followed a “surprise audit,” said Staunton police spokeswoman Lisa Klein.
McEwing is free on bond.
Thursday, September 16, 2010
Former West Virginia Credit Union Employee Admits Role in Fraud Scheme
A former employee of a federal credit union pleaded guilty Monday to charges stemming from her role in a multi-million fraud schema that led to the failure of a credit union. Pamela Mullins, 47, of Bluefield pleaded guilty to a one-count information charging her with bank fraud. Mullins faces up to 30 years in prison and a $1 million fine when sentenced in January.In August, a federal grand jury in Beckley returned an indictment against Mullins’ co-worker, Rebecca Poe, 35, of Falls Mills, Virginia.According to the U.S. Attorney Mullins was named but not charged in the indictment. The indictment alleges that Poe, aided and abetted by Mullins, stole money from the N&W Poca Division Federal Credit Union located in Bluefield from 2003 to August 2008 through various schemes. The scheme resulted in the loss of $2.4 million dollars to the credit union contributing to its failure. Poe is scheduled to stand trial next month.
Monday, September 13, 2010
Former United Bank Employee in Virginia Sentenced to 30 Months for Helping Conspirator Steal $17 Million from Bank
Sissaye Gezachew, 32, of Springfield, Va., was sentenced today to 30 months in prison for his role in a multi-million-dollar bank fraud conspiracy.Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Shawn Henry, Assistant Director in Charge of the FBI Washington Field Office; and Rebecca Sparkman, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office, made the announcement after sentencing by United States District Judge Leonie M. Brinkema.Gezachew, who worked as an assistant vice president-senior credit analyst at United Bank during the time frame of the scheme, assisted Osama El-Atari, 31, of Ashburn, Va., to defraud United Bank of more than $17 million from 2007 to 2009. Gezachew aided El-Atari in his fraudulent scheme by supplying him with fraudulent documents, including a fraudulent tax return, and setting up fake domain names and e-mail accounts for El-Atari to submit to the bank in support of the fraudulently obtained loans. As part of his sentence, Gezachew was also ordered to pay $18 million in restitution to United Bank.On Aug. 27, 2010, El-Atari was sentenced to 144 months in prison for operating the fraud scheme that stole more than $53 million from banks throughout the United States.This case was investigated by the FBI Washington Field Office and the Internal Revenue Service Criminal Investigation Division. Assistant United States Attorneys Jonathan Fahey and Jack Hanly are prosecuting the case on behalf of the United States.
Saturday, July 10, 2010
Springfield, Virginia Man Pleads Guilty to Bank Fraud
Sissaye Gezachew, 32, of Springfield, Virginia, pleaded guilty yesterday to using his position at United Bank to assist a conspirator who stole more than $17 million from the financial institution.Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Shawn Henry, Assistant Director in Charge of the FBI Washington Field Office; and Rebecca Sparkman, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office, made the announcement after the plea was accepted by United States District Judge Leonie M. Brinkema. Gezachew faces a maximum penalty of 30 years in prison for conspiracy to commit bank fraud when he is sentenced on Sept. 3, 2010.In a statement of facts filed with his plea agreement, Gezachew assisted Osama El-Atari, who defrauded United Bank of more than $17 million in fraudulent loans from 2007 until 2009. Gezachew worked as an assistant vice president-senior credit analyst at United Bank during the time frame of the scheme. Gezachew admitted that he assisted El-Atari by supplying him with fraudulent documents, including a fraudulent tax return, to submit to United Bank in connection with El-Atari’s loans.This case was investigated by the FBI Washington Field Office and the Internal Revenue Service Criminal Investigation Division. Assistant United States Attorneys Jonathan Fahey and Jack Hanly are prosecuting the case on behalf of the United States.
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