former vice president of Hebron Savings Bank in Wicomico
County was sentenced to 18 months in prison for embezzlement and ordered to
pay $456,665 in restitution, federal prosecutors said Thursday.
Wanda Henderson, 56, of Westover had used her position at the bank, including
her role as executive assistant to president, to manipulate bank records and
receive fraudulent loans over a period from 2005 until April 2011, according to
the U.S. Attorney for the District of Maryland. Over that time, Henderson had
secured 20 fraudulent loans for herself and family members worth more than
$680,000, with most of that ending in default, prosecutors said.
According to prosecutors, Henderson created fraudulent loan applications,
then got them approved by forging the signatures of the president and other bank
officials. She also forged the initials of other employees so the money could be
transferred into checking accounts owned by her and a family member, prosecutors
said.
Henderson hid the theft by changing bank records and taking out new loans to
repay older loans when they came due, prosecutors said.
Henderson could not be reached for comment.
Hebron Savings Bank, founded in 1910, had assets of $500,085 at the end of
December, according to the Federal
Deposit Insurance Corp. Bank officials could not be reached for comment
Thursday.
Thursday, March 14, 2013
Saturday, March 9, 2013
Thursday, March 7, 2013
Eddington Pleads Guilty to Fraud, Embezzlement in Missouri
Irvin R. Eddington Jr., 42, former vice president and manager of the Ellington Branch of Peoples Community State Bank, entered a guilty plea last week in U.S. District Court to charges of bank fraud and embezzlement.
Attorneys say Eddington created fraudulent PCSB money orders in the amount of approximately $49,000 funded by advances from customer lines of credit and forging the customers names to obtain cash or to pay his bills.Also, from January 2004 through October 2011, prosecutors say Eddington created and issued a number of fraudulent unsecured irrevocable letters of credit to an associate in the name of the bank worth approximately $1,340,896.
Based on loan defaults to date, PCSB is liable for approximately $674,336 of the potential $1,340,896 loss.
Sentencing for Eddington has been set for May 20, 2013, by U.S. District Judge Carol E. Jackson. The penalty for each of the two charges is a maximum of 30 years imprisonment and up to $1 million in fines.
The charges were originally filed Sept. 19, 2012, but Eddington’s lawyer filed a motion to dismiss the second count of the indictment.
Judge Jackson referred all pretrial matters in this case to United States Magistrate Judge Lewis M. Blanton in the Cape Girardeau office for determination and recommended disposition, where appropriate.
On Dec. 12, 2012, Judge Blanton filed a report and recommendation with respect to the defendant’s motion to dismiss Count Two of the indictment. The defendant filed timely objections to which the United States has responded.
Magistrate Blanton found, and Judge Jackson agreed in an opinion delivered Feb. 4, that the allegations in Count Two are sufficiently specific to apprise the defendant of the conduct that is deemed unlawful. Further, the factual allegations, if proved, would be sufficient to establish a violation of federal law.
Following the denial of the defense’s motion to dismiss the second charge, Eddington agreed to plead guilty to both charges.
In addition to charges previously described, Eddington also admitted to perpetrating additional fraudulent schemes on PCSB as reported by the Daily American Republic on Friday, March 1.
On March 11, 2010, Eddington, in an effort to circumvent Federal Reserve regulations governing insider lending to bank officers, approved a nominee loan to two customers on the bank for $45,000.
He reported the loan to PCSB; however, did not report he was receiving the proceeds of the loan. The loss to PCSB for this scheme was $58,500.
On Aug. 4, 2011, the PCSB loan committee approved a $249,000 loan to an associate of Eddington, who misrepresented collateral for the loan by providing a fraudulent title insurance policy as part of the loan application.
Finally, when the $249,000 loan was presented for approval, Eddington failed to disclose that the associate would receive $56,114 cash from the loan proceeds.
The loan committee would not have approved the loan had they known the loan was “secure” by different property, the lack of title insurance and the cash payout to the borrower. This loan went into default and was charged off by the bank.
Attorneys say Eddington created fraudulent PCSB money orders in the amount of approximately $49,000 funded by advances from customer lines of credit and forging the customers names to obtain cash or to pay his bills.Also, from January 2004 through October 2011, prosecutors say Eddington created and issued a number of fraudulent unsecured irrevocable letters of credit to an associate in the name of the bank worth approximately $1,340,896.
Based on loan defaults to date, PCSB is liable for approximately $674,336 of the potential $1,340,896 loss.
Sentencing for Eddington has been set for May 20, 2013, by U.S. District Judge Carol E. Jackson. The penalty for each of the two charges is a maximum of 30 years imprisonment and up to $1 million in fines.
The charges were originally filed Sept. 19, 2012, but Eddington’s lawyer filed a motion to dismiss the second count of the indictment.
Judge Jackson referred all pretrial matters in this case to United States Magistrate Judge Lewis M. Blanton in the Cape Girardeau office for determination and recommended disposition, where appropriate.
On Dec. 12, 2012, Judge Blanton filed a report and recommendation with respect to the defendant’s motion to dismiss Count Two of the indictment. The defendant filed timely objections to which the United States has responded.
Magistrate Blanton found, and Judge Jackson agreed in an opinion delivered Feb. 4, that the allegations in Count Two are sufficiently specific to apprise the defendant of the conduct that is deemed unlawful. Further, the factual allegations, if proved, would be sufficient to establish a violation of federal law.
Following the denial of the defense’s motion to dismiss the second charge, Eddington agreed to plead guilty to both charges.
In addition to charges previously described, Eddington also admitted to perpetrating additional fraudulent schemes on PCSB as reported by the Daily American Republic on Friday, March 1.
On March 11, 2010, Eddington, in an effort to circumvent Federal Reserve regulations governing insider lending to bank officers, approved a nominee loan to two customers on the bank for $45,000.
He reported the loan to PCSB; however, did not report he was receiving the proceeds of the loan. The loss to PCSB for this scheme was $58,500.
On Aug. 4, 2011, the PCSB loan committee approved a $249,000 loan to an associate of Eddington, who misrepresented collateral for the loan by providing a fraudulent title insurance policy as part of the loan application.
Finally, when the $249,000 loan was presented for approval, Eddington failed to disclose that the associate would receive $56,114 cash from the loan proceeds.
The loan committee would not have approved the loan had they known the loan was “secure” by different property, the lack of title insurance and the cash payout to the borrower. This loan went into default and was charged off by the bank.
Monday, March 4, 2013
FORMER BANK EMPLOYEE SENTENCED FOR EMBEZZELMENT IN MICHIGAN
A FORMER SIGNATURE BANK EMPLOYEE HAS BEEN SENTENED TO 18 MONTHS IN FEDERAL PRISON FOR EMBEZZLING MORE THAN $200,000 FROM THE BANK.
ACCORDING TO A SIGNATURE BANK PRESS RELEASE, THE U.S. ATTORNEY'S OFFICE ISSUED FEDERAL CHARGES AGAINST JILL BUCHHOLZ OF PIGEON IN CONNECTION WITH THE INCIDENT.
SHE APPEARED IN FEDERAL DISTRICT COURT IN BAY CITY FOR SENTENCING THURSDAY. SHE WAS ALSO ORDERED TO PAY RESTITUION OF 186,000 DOLLARS.
BUCHHOLTZ REPORTEDLY ENTERED A GUILTY PLEA TO A SINGLE FELONY COUNT IN AN EARLIER APPEARANCE. THE INCIDENTS OCCURRED BETWEEN 2009 AND JULY 2011.WHEN BANK EXECUTIVES BEGAN INVESTIGATING THE SUSPECTED EMBEZZLEMENT.
THE RELEASE STATES THE SUSPECTED EMBEZZELMENT WAS IMMEDIATELY REPORTED TO LOCAL POLICE AND THE FBI. AN OUTSIDE CONSULTANT WAS HIRED TO HELP REVIEW BANK FILES. BUCHHOLZ HAS SINCE RESIGNED HER POSITION. NO OTHER BANK EMPLOYEES WERE INVOLVED.
OFFICIALS SAID BANK EXECUTIVES WERE INITIALLY MADE AWARE OF SOME VIOLATIONS OF BANK POLICIES AND PROCEDURES AND SOME IRREGULARITIES WITH LOANS ORIGINATED BY BUCCHOLZ. ACCOUNTS OF APPROXIMATELY 20 BANK CUSTOMERS WERE THE SUBJECT OF FRAUDULENT ACTIVITIES. THOSE CUSTOMERS WERE ALL NOTIFIED AND THE BANK MET WITH EACH TO INFORM THEM OF THE SITUATION. BANK PRESIDENT AND CEO ROBERT THOMAS TOLD WLEW THE BANK IS PROTECTED BY SPECIAL INSURANCE AGAINST FRAUD AND DISHONESTY BY EMPLOYEES.
Court records state Buchholz, between 2009 and 2011, used her position at Signature Bank to embezzle at least $306,000.
“We are disheartened that a former employee abused the trust our customers and coworkers placed in her every day,” said President and CEO Robert Thomas in a press release. “Unfortunately, fraud is more common today because of economic conditions and banks are not immune, despite the high level of controls we have. With the help of an outside forensic accountant, we have evaluated our internal processes and procedures to ensure we have the proper safeguards in place.”
Buchholz pleaded guilty to one felony count of theft/embezzlement/misapplication by a bank officer. That crime carries a maximum sentence of 30 years in prison and a $1 million fine.
Bank executives were initially made aware of some violations of bank policies and procedures and some irregularities with loans originated by Buchholz. No other bank employees were involved.
As the internal investigation proceeded, the bank reports that it met with each affected customer to inform them of the situation.
“We took swift action to stop the fraudulent activity and appreciate all the hard work law enforcement has put into this investigation to ensure that this individual is held accountable for her actions,” Thomas said. “Our customers are very loyal and understand that we are a federally insured depository institution. Any financial risk is to the bank, not to our customers.”
Signature Bank carries special insurance to protect it against fraud and dishonesty by employees. The bank employs more than 100 people at eight branches, with headquarters in Bad Axe.
No Signature Bank deposit customer incurred a financial loss as a result of a recent criminal activity by a former employee, bank officials announced Monday.
The accounts of about 20 Signature Bank customers were the subject of the fraudulent activity and all customers involved have been notified of the issue, the bank announced. It said no loan customers have been required to pay any amounts contrary to their loan agreements or pay any amounts improperly credited as a result of the fraud.
Former loan representative Jill M. Buchholz of Pigeon was sentenced last week to 18 months in federal prison and ordered to pay $186,000 in restitution to the bank. Federal Judge Thomas L. Ludington sentenced her in U.S. District Court in Bay City.
No Signature Bank deposit customer incurred a financial loss as a result of a recent criminal activity by a former employee, bank officials announced Monday.
The accounts of about 20 Signature Bank customers were the subject of the fraudulent activity and all customers involved have been notified of the issue, the bank announced. It said no loan customers have been required to pay any amounts contrary to their loan agreements or pay any amounts improperly credited as a result of the fraud.
Former loan representative Jill M. Buchholz of Pigeon was sentenced last week to 18 months in federal prison and ordered to pay $186,000 in restitution to the bank. Federal Judge Thomas L. Ludington sentenced her in U.S. District Court in Bay City.
ACCORDING TO A SIGNATURE BANK PRESS RELEASE, THE U.S. ATTORNEY'S OFFICE ISSUED FEDERAL CHARGES AGAINST JILL BUCHHOLZ OF PIGEON IN CONNECTION WITH THE INCIDENT.
SHE APPEARED IN FEDERAL DISTRICT COURT IN BAY CITY FOR SENTENCING THURSDAY. SHE WAS ALSO ORDERED TO PAY RESTITUION OF 186,000 DOLLARS.
BUCHHOLTZ REPORTEDLY ENTERED A GUILTY PLEA TO A SINGLE FELONY COUNT IN AN EARLIER APPEARANCE. THE INCIDENTS OCCURRED BETWEEN 2009 AND JULY 2011.WHEN BANK EXECUTIVES BEGAN INVESTIGATING THE SUSPECTED EMBEZZLEMENT.
THE RELEASE STATES THE SUSPECTED EMBEZZELMENT WAS IMMEDIATELY REPORTED TO LOCAL POLICE AND THE FBI. AN OUTSIDE CONSULTANT WAS HIRED TO HELP REVIEW BANK FILES. BUCHHOLZ HAS SINCE RESIGNED HER POSITION. NO OTHER BANK EMPLOYEES WERE INVOLVED.
OFFICIALS SAID BANK EXECUTIVES WERE INITIALLY MADE AWARE OF SOME VIOLATIONS OF BANK POLICIES AND PROCEDURES AND SOME IRREGULARITIES WITH LOANS ORIGINATED BY BUCCHOLZ. ACCOUNTS OF APPROXIMATELY 20 BANK CUSTOMERS WERE THE SUBJECT OF FRAUDULENT ACTIVITIES. THOSE CUSTOMERS WERE ALL NOTIFIED AND THE BANK MET WITH EACH TO INFORM THEM OF THE SITUATION. BANK PRESIDENT AND CEO ROBERT THOMAS TOLD WLEW THE BANK IS PROTECTED BY SPECIAL INSURANCE AGAINST FRAUD AND DISHONESTY BY EMPLOYEES.
Court records state Buchholz, between 2009 and 2011, used her position at Signature Bank to embezzle at least $306,000.
“We are disheartened that a former employee abused the trust our customers and coworkers placed in her every day,” said President and CEO Robert Thomas in a press release. “Unfortunately, fraud is more common today because of economic conditions and banks are not immune, despite the high level of controls we have. With the help of an outside forensic accountant, we have evaluated our internal processes and procedures to ensure we have the proper safeguards in place.”
Buchholz pleaded guilty to one felony count of theft/embezzlement/misapplication by a bank officer. That crime carries a maximum sentence of 30 years in prison and a $1 million fine.
Bank executives were initially made aware of some violations of bank policies and procedures and some irregularities with loans originated by Buchholz. No other bank employees were involved.
As the internal investigation proceeded, the bank reports that it met with each affected customer to inform them of the situation.
“We took swift action to stop the fraudulent activity and appreciate all the hard work law enforcement has put into this investigation to ensure that this individual is held accountable for her actions,” Thomas said. “Our customers are very loyal and understand that we are a federally insured depository institution. Any financial risk is to the bank, not to our customers.”
Signature Bank carries special insurance to protect it against fraud and dishonesty by employees. The bank employs more than 100 people at eight branches, with headquarters in Bad Axe.
No Signature Bank deposit customer incurred a financial loss as a result of a recent criminal activity by a former employee, bank officials announced Monday.
The accounts of about 20 Signature Bank customers were the subject of the fraudulent activity and all customers involved have been notified of the issue, the bank announced. It said no loan customers have been required to pay any amounts contrary to their loan agreements or pay any amounts improperly credited as a result of the fraud.
Former loan representative Jill M. Buchholz of Pigeon was sentenced last week to 18 months in federal prison and ordered to pay $186,000 in restitution to the bank. Federal Judge Thomas L. Ludington sentenced her in U.S. District Court in Bay City.
No Signature Bank deposit customer incurred a financial loss as a result of a recent criminal activity by a former employee, bank officials announced Monday.
The accounts of about 20 Signature Bank customers were the subject of the fraudulent activity and all customers involved have been notified of the issue, the bank announced. It said no loan customers have been required to pay any amounts contrary to their loan agreements or pay any amounts improperly credited as a result of the fraud.
Former loan representative Jill M. Buchholz of Pigeon was sentenced last week to 18 months in federal prison and ordered to pay $186,000 in restitution to the bank. Federal Judge Thomas L. Ludington sentenced her in U.S. District Court in Bay City.
Saturday, March 2, 2013
Bank Employee From Ridgefield Accused Of $739,000 Theft in New York
A Larchmont bank employee accused of transferring $739,000 from customer accounts to his own was arraigned Friday, Westchester District Attorney Janet DiFiore announced.
Jeremy Winter, of Ridgefield, Conn., was charged with three counts of second-degree grand larceny, second-degree forgery, first-degree falsifying business records and first-degree scheme to defraud, all felonies. He worked at TD Bank, 107 Chatsworth Ave.
The defendant allegedly used the money to pay off personal loans and contractors he hired to do home improvements, DiFiore said. He continued to take money from customers to replenish previous victims' accounts, which the District Attorney's press release called "robbing Peter to pay Paul."
Winter also is accused of forging a customer’s signature on a withdrawal slip for $110,000, creating a false business record. The bank reported Winter to the Larchmont police in September. He was arrested Thursday, Feb. 28, and arraigned in Larchmont Village Court. Bail was set at $100,000.
Winter is due in Westchester County Court May 14. He faces a maximum sentence of 15 years in prison on each of the counts.
Assistant District Attorney Robert Mayes of the Economic Crimes Bureau is prosecuting the case
Friday, March 1, 2013
Ex-PlainsCapital employee admits embezzlement in Texas
Ex-bank employee admits embezzlement.
Riley Paige Trotter pleaded guilty Thursday to a federal bank embezzlement charge, admitting she stole more than $36,000 from PlainsCapital Bank over 27 months.
Trotter, who was a part-time teller supervisor, faces a maximum sentence of 30 years in prison and a fine of up to $1 million. The sentence also requires at least three years of supervised release.
According to court documents, an audit in July 2012 showed the bank’s cash vault was short $20,000, while Trotter’s teller drawer was short more than $16,000.
Court documents say Trotter admitted the theft to the bank. She began taking the money in May 2010.
U.S. District Court Judge Sam R. Cummings accepted the plea. No sentencing date was immediately set.
Former VP of Hill County bank released on bond for embezzlement charge in Texas
A former First National Bank of Whitney vice president who is scheduled to
plead guilty next week to embezzling more than
$6 million from the institution
was released on bond Thursday.
U.S. Magistrate Jeffrey C. Manske set a $100,000 unsecured bond for Mary Helen “Murty” Lane, who worked for 27 years at the bank. Lane, 57, who is living with family members in Houston, is set to plead guilty March 7 to theft, embezzlement or misapplication by a bank officer or employee, said her attorney, John Floyd, of Houston.
She is charged with embezzling more than $6 million from the Hill County bank during a 10-year period.
Before releasing her on bond, the judge asked if Lane constitutes a flight risk because of the amount she allegedly stole.
Assistant U.S. Attorney Mark Frazier told Manske the government does not consider her a flight risk and agreed to the unsecured bond, which means Lane was released Thursday without having to pay anything but will be liable for $100,000 if she misses a court date.
Lane had not been arrested and made arrangements to be in court Thursday for her initial appearance.
Dressed in a black-and-white pattern jacket and black pants, Lane told Manske that she is a high school graduate with 30 hours of college credit as she stood in line with two men wearing jail clothes who are charged with distribution of crack cocaine and two others charged with weapons violations.
Lane, who resigned as vice president in January 2012, was accompanied to court by her brother, her sister and her brother-in-law, Floyd said.
Michael Farquhar, president of the bank, also attended the hearing Thursday. He declined comment as he left court.
Floyd said he could not comment at length while the case remains pending. He declined to say if Floyd has a gambling problem or if she would be able to repay any of the money she reportedly took from the bank.
Gambling trips
Federal authorities have alleged in court documents that Lane used her reportedly ill-gotten gains to take lavish gambling trips and to buy expensive sports cars.
A co-worker told an FBI agent that Lane kept so much cash on hand that she went home on a few occasions to get cash when the bank ran out of $100 bills.
Lane retrieved $100 bills from her home and brought them back to use at the bank in exchange for smaller bills, according to court records.
Federal authorities say in court records she removed large amounts of cash from the vault and then created false bank documents to hide her thefts and to “fool bank employees and bank auditors.”
Lane used the “majority of the embezzled money” to gamble at casinos in Las Vegas, Oklahoma and Louisiana, court documents allege.
Lane often gave her co-workers $100 bills, claiming she was a big winner at the casino, records indicate.
If convicted, Lane faces up to 30 years in prison and a fine up to $1 million.
The former vice-president of the Whitney First National Bank stands accused of stealing more than $6 million from her employer. In the federal information filed against her, she is facing an embezzlement charge.
Investigators claim that the woman took huge sums of money from the bank's safe and then falsified bank documents to hide the money that had been taken. Allegedly, the woman used most of the money to gamble. When she would return from trips, investigators say the woman handed out money to her co-workers and told them she had won it gambling.
Police claim that the bank once ran out of $100 bills, so the woman went to her home and retrieved some she had. She then exchanged them for $20 bills at the bank. She is also accused of buying expensive cars with money she allegedly stole.
The woman worked at the bank for 27 years and resigned in January 2012. According to court documents, the alleged embezzlement scheme went on for 10 years.
In a case where a defendant is charged with embezzlement, the prosecution must prove that the defendant took money or other property and intended to take it without the owner's consent. If the defendant lacked this intent, then she cannot be convicted of embezzlement.
The penalty for embezzlement is determined by the value of the goods or amount of money that was taken. The smallest penalty is a fine of less than $500 for taking less than $50. However, the penalty for taking $200,000 or more is a fine of up to $10,000 and up to ninety-nine years in prison.
U.S. Magistrate Jeffrey C. Manske set a $100,000 unsecured bond for Mary Helen “Murty” Lane, who worked for 27 years at the bank. Lane, 57, who is living with family members in Houston, is set to plead guilty March 7 to theft, embezzlement or misapplication by a bank officer or employee, said her attorney, John Floyd, of Houston.
She is charged with embezzling more than $6 million from the Hill County bank during a 10-year period.
Before releasing her on bond, the judge asked if Lane constitutes a flight risk because of the amount she allegedly stole.
Assistant U.S. Attorney Mark Frazier told Manske the government does not consider her a flight risk and agreed to the unsecured bond, which means Lane was released Thursday without having to pay anything but will be liable for $100,000 if she misses a court date.
Lane had not been arrested and made arrangements to be in court Thursday for her initial appearance.
Dressed in a black-and-white pattern jacket and black pants, Lane told Manske that she is a high school graduate with 30 hours of college credit as she stood in line with two men wearing jail clothes who are charged with distribution of crack cocaine and two others charged with weapons violations.
Lane, who resigned as vice president in January 2012, was accompanied to court by her brother, her sister and her brother-in-law, Floyd said.
Michael Farquhar, president of the bank, also attended the hearing Thursday. He declined comment as he left court.
Floyd said he could not comment at length while the case remains pending. He declined to say if Floyd has a gambling problem or if she would be able to repay any of the money she reportedly took from the bank.
Gambling trips
Federal authorities have alleged in court documents that Lane used her reportedly ill-gotten gains to take lavish gambling trips and to buy expensive sports cars.
A co-worker told an FBI agent that Lane kept so much cash on hand that she went home on a few occasions to get cash when the bank ran out of $100 bills.
Lane retrieved $100 bills from her home and brought them back to use at the bank in exchange for smaller bills, according to court records.
Federal authorities say in court records she removed large amounts of cash from the vault and then created false bank documents to hide her thefts and to “fool bank employees and bank auditors.”
Lane used the “majority of the embezzled money” to gamble at casinos in Las Vegas, Oklahoma and Louisiana, court documents allege.
Lane often gave her co-workers $100 bills, claiming she was a big winner at the casino, records indicate.
If convicted, Lane faces up to 30 years in prison and a fine up to $1 million.
The former vice-president of the Whitney First National Bank stands accused of stealing more than $6 million from her employer. In the federal information filed against her, she is facing an embezzlement charge.
Investigators claim that the woman took huge sums of money from the bank's safe and then falsified bank documents to hide the money that had been taken. Allegedly, the woman used most of the money to gamble. When she would return from trips, investigators say the woman handed out money to her co-workers and told them she had won it gambling.
Police claim that the bank once ran out of $100 bills, so the woman went to her home and retrieved some she had. She then exchanged them for $20 bills at the bank. She is also accused of buying expensive cars with money she allegedly stole.
The woman worked at the bank for 27 years and resigned in January 2012. According to court documents, the alleged embezzlement scheme went on for 10 years.
In a case where a defendant is charged with embezzlement, the prosecution must prove that the defendant took money or other property and intended to take it without the owner's consent. If the defendant lacked this intent, then she cannot be convicted of embezzlement.
The penalty for embezzlement is determined by the value of the goods or amount of money that was taken. The smallest penalty is a fine of less than $500 for taking less than $50. However, the penalty for taking $200,000 or more is a fine of up to $10,000 and up to ninety-nine years in prison.
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