Huntington National Bank accuses a former manager of stealing $2.7 million by diverting bank funds to his Chillicothe property-management company.
Joseph P. Molnar, 49, stole the funds between late 2008 and mid-2012 while helping to manage a Huntington subsidiary, the Columbus-based bank claimed in a lawsuit filed in U.S. District Court in Columbus.
The lawsuit accuses Molnar and unidentified parties of engaging in a racketeering scheme to divert money owed to Huntington to J. Property Management, a company owned by Molnar.
Molnar owns property in downtown Chillicothe and has been active in efforts to redevelop the community, including the landmark Carlisle Building damaged by a fire set by an arsonist in 2003.
U.S. District Court Judge Algenon Marbley is scheduled to conduct a Nov. 14 hearing on Huntington’s request for a preliminary injunction to prevent Molnar and others from transferring or spending any Huntington money.
The lawsuit, which seeks the return of $2.7 million and damages, claims that Molnar admitted on Oct. 31 to diverting money owed to Huntington into the bank account of his company. The bank filed the lawsuit the same day.
Molnar did not respond today to a message seeking comment. He has not filed a response to the lawsuit or identified a lawyer to represent him.
The lawsuit alleges the diversions occurred while Molnar helped manage the investments of Huntington Community Development Corp., a subsidiary that invests in low-income housing and other projects that yield tax credits for the bank.
Huntington accuses Molnar of diverting “development advisory fees” paid by developers to cover the costs of managing the subsidiary’s investments.
The lawsuit says that Huntington did not discover the “ongoing fraud” until September. No customers lost money as a result of the alleged scheme, said Huntington spokeswoman Maureen Brown.
No criminal charges have been filed against Molnar. A spokesman for the U.S. attorney's office said it could not comment. "We referred the issue to the appropriate law-enforcement officials and expect prosecution to the fullest extent of the law," Brown said.
Saturday, November 9, 2013
BRIDGEPORT, CALIFORNIA BANK MANAGER PLEADS TO EMBEZZLEMENT
On October 9, 2013, Roxanna Foley, 52, of Bridgeport, pleaded guilty to one count of embezzlement by a bank employee, United States Attorney Benjamin B. Wagner announced.
According to court documents, Foley worked at Eastern Sierra Community Bank (ECSB). Starting in November 2011, bank officials noticed discrepancies with the Bridgeport branch of ESCB. On March 19, 2012, managers from the bank made an unannounced visit to that branch to investigate a suspicious $90,000 transaction. After a review of the bank’s records, officials identified $90,000 in misplaced funds, as well as $6,000 missing from Foley’s teller drawer.
During the surprise inspection, Foley admitted to taking $6,000 from her cash drawer, as well as an additional $312,000 from the bank. A later review of the Bishop ECSB’s accounts uncovered $322,000 in missing funds, as well as multiple electronic “covering transactions” – that is, transactions moving money between accounts – made by Foley. Officials also learned that Foley had also been circumventing normal banking procedures at ECSB, including single-handedly taking over all counting and auditing of ECSB accounts when dual-counting procedures were required.
This case is the product of an investigation by the Mono County Sheriff’s Department, the Mono County District Attorney’s Office, and the Federal Bureau of Investigation. Assistant United States Attorney Kyle Reardon is prosecuting the case.
Foley is scheduled to be sentenced by Unites States District Judge Kimberly J. Mueller on January 29, 2104, at 9:00 a.m. She faces a maximum sentence of 30 years in prison, a $1 million fine, and a five-year term of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
According to court documents, Foley worked at Eastern Sierra Community Bank (ECSB). Starting in November 2011, bank officials noticed discrepancies with the Bridgeport branch of ESCB. On March 19, 2012, managers from the bank made an unannounced visit to that branch to investigate a suspicious $90,000 transaction. After a review of the bank’s records, officials identified $90,000 in misplaced funds, as well as $6,000 missing from Foley’s teller drawer.
During the surprise inspection, Foley admitted to taking $6,000 from her cash drawer, as well as an additional $312,000 from the bank. A later review of the Bishop ECSB’s accounts uncovered $322,000 in missing funds, as well as multiple electronic “covering transactions” – that is, transactions moving money between accounts – made by Foley. Officials also learned that Foley had also been circumventing normal banking procedures at ECSB, including single-handedly taking over all counting and auditing of ECSB accounts when dual-counting procedures were required.
This case is the product of an investigation by the Mono County Sheriff’s Department, the Mono County District Attorney’s Office, and the Federal Bureau of Investigation. Assistant United States Attorney Kyle Reardon is prosecuting the case.
Foley is scheduled to be sentenced by Unites States District Judge Kimberly J. Mueller on January 29, 2104, at 9:00 a.m. She faces a maximum sentence of 30 years in prison, a $1 million fine, and a five-year term of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Cameron Park, California man pleads guilty to bank embezzlement
A Cameron Park man today pleaded guilty in federal court in Sacramento to one count of bank embezzlement.
Ethan George Banaszak, 35, embezzled thousands of dollars from his employer, a federally insured bank, according to a federal Department of Justice news release.
Court documents show that Banaszak made more than $660,000 in unauthorized withdrawals from bank customers' accounts and took $16,000 in cash from the bank's vault.
He is to be sentenced Jan. 23 by U.S. District Judge Garland E. Burrell.
The case resulted from an FBI investigation.
When he’s sentenced in January, he faces a possible maximum statutory penalty of 30 years in prison and a $1 million fine.
Monday, November 4, 2013
Kiel, Wisconsin woman charged with bank embezzlement
A 27-year-old Kiel woman was charged Thursday with stealing more than $5,500 while working as a bank teller at Community Bank & Trust in the Town of Sheboygan.
Megan A. Murray, of 620 12th St., Lot 2A, is charged with one felony count of theft from a financial institution. She faces up to three years in prison if convicted.
According to a criminal complaint, prior to the alleged theft, Murray had applied for a $5,000 loan while working at the bank, though it had not yet been granted.
Last week, the bank performed a routine audit at the branch and found Murray’s teller drawer short $500, with the same amount found in a bottom drawer beneath a coin tray.
Further audit work revealed an additional $5,540 allegedly missing from Murray’s teller drawer for the month of October.
Murray denied stealing the money when questioned by a Sheboygan County Sheriff’s Office deputy.
Megan A. Murray, of 620 12th St., Lot 2A, is charged with one felony count of theft from a financial institution. She faces up to three years in prison if convicted.
According to a criminal complaint, prior to the alleged theft, Murray had applied for a $5,000 loan while working at the bank, though it had not yet been granted.
Last week, the bank performed a routine audit at the branch and found Murray’s teller drawer short $500, with the same amount found in a bottom drawer beneath a coin tray.
Further audit work revealed an additional $5,540 allegedly missing from Murray’s teller drawer for the month of October.
Murray denied stealing the money when questioned by a Sheboygan County Sheriff’s Office deputy.
City Councilor Turns Self in on Larceny Charge in Connecticutt
A West Haven city councilor suspected of stealing more than $170,000 when he worked in a bank has turned himself in to New Canaan police on larceny charges.
Stephen DeCrescenzo was an employee of the New Canaan branch of Citizens bank and is accused of embezzling $172,000 from the accounts of two customers and using another account to filter the money, police said.
DeCrescenzo was charged with two counts of first-degree larceny. He appeared in court on Friday and was released on a written promise to appear.
The two victims are New Canaan residents, according to police.
DeCrescenzo turned himself in to New Canaan police on Friday morning and was unable to post $300,000 bond. He will be arraigned in Norwalk Superior Court this morning.
Friends told NBC Connecticut that DeCrescenzo no longer works at the bank.
He is still a West Haven City Councilor and is running for re-election next Tuesday.
His attorney said he advised his client not to drop out of the race.
Tom McCarthy serves on the council with DeCrescenzo and said he is shocked by the allegations.
“My initial reaction was shock. I've known Steve, worked with him very closely, great admirer of his,” McCarthy said.
McCarthy said there also has been concern for DeCrescenzo, since he had not come forward yet to face the charges.
“The longer this goes on, the concern builds. We are all concerned for him, and obviously his family,” said McCarthy.
No one answered the door at DeCrescenzo's West Haven home on Thursday.
He is due back in court on November 15.
Stephen DeCrescenzo was an employee of the New Canaan branch of Citizens bank and is accused of embezzling $172,000 from the accounts of two customers and using another account to filter the money, police said.
DeCrescenzo was charged with two counts of first-degree larceny. He appeared in court on Friday and was released on a written promise to appear.
The two victims are New Canaan residents, according to police.
DeCrescenzo turned himself in to New Canaan police on Friday morning and was unable to post $300,000 bond. He will be arraigned in Norwalk Superior Court this morning.
Friends told NBC Connecticut that DeCrescenzo no longer works at the bank.
He is still a West Haven City Councilor and is running for re-election next Tuesday.
His attorney said he advised his client not to drop out of the race.
Tom McCarthy serves on the council with DeCrescenzo and said he is shocked by the allegations.
“My initial reaction was shock. I've known Steve, worked with him very closely, great admirer of his,” McCarthy said.
McCarthy said there also has been concern for DeCrescenzo, since he had not come forward yet to face the charges.
“The longer this goes on, the concern builds. We are all concerned for him, and obviously his family,” said McCarthy.
No one answered the door at DeCrescenzo's West Haven home on Thursday.
He is due back in court on November 15.
Former Bartlesville, Oklahoma Bank Employee Faces Federal Embezzlement Charges
A former Bartlesville bank employee, charged with embezzling $147,000 from the customers of Osage Federal Bank, was arraigned this week in Tulsa federal court.
Patricia Swearingin, 66, was initially charged in Washington County in January 2011 after the son of a victim contacted the bank about money missing from a certificate of deposit his mother had.
Bartlesville's Examiner Enterprise reports those charges were dismissed in April 2012 according federal prosecutors because of a subpoena records from an Indian casino.
The U.S. Attorney's Office filed charges against Swearingin in October.
An affidavit filed in Washington County in 2011 stated bank officials told investigators Swearingin had embezzled somewhere between $50,000 and $100,000 from at least four customers at Osage Bank in 2010.
In the affidavit, Swearingin told police that all the money was won at a casino.
Pittsburgh man accused of defrauding banks, individuals of millions
FROM TRIBLIVE.COM -
Joseph Graziano Jr. flaunted his wealth.
He flashed cash and frequented VIP sections in casinos, friends said. He rented a swanky Squirrel Hill condo for a year, paying cash upfront, a former landlord said. He bragged on a blog that he paid cash for his first Lamborghini and a Bentley.
“I loved it. It was empowering,” Graziano, 28, of Downtown wrote at blackcardstatus.com. “... I walked out with the Lamborghini, and the title. I owned it. No leinholder (sic), it was a rush!”
It was a lie, according to investigators.
In an indictment, the U.S. Attorney's Office said Graziano embezzled nearly $2.5 million from Bank of New York Mellon Corp. while working there; took out bank loans and offered expensive cars he no longer owned as collateral; and ripped off eBay customers by accepting thousands of dollars for electronics and sending buyers empty boxes.
Graziano pleaded not guilty on Oct. 22 to 14 counts of bank fraud, bank embezzlement and mail fraud. The crimes carry a potential prison sentence of 380 years and an $11 million fine.
Graziano could not be reached. A man who answered his cellphone hung up.
Free on an unsecured $25,000 bond, he remains in Western Pennsylvania, said his attorney, Martin Dietz, who would not comment. Graziano's family declined to comment.
But the indictment, former friends and associates, and what remains of Graziano's social media footprint document the derailment of an extravagant life.
“I've experienced more at my age than most people will in their entire lifetime,” Graziano blogged in July.
REMAKING HIS IMAGE
Graziano, the son of an insurance broker, lived in the small town of Hawley, near Scranton, before enrolling at the University of Pittsburgh. He graduated in 2008 with a bachelor's degree in economics, Pitt spokesman Adam Reger said.
He apparently was an unremarkable student: Reger said department officials “didn't come up with anyone who remembers this student.”
Soon after graduating, however, he landed the BNY Mellon job and began remaking his image.
He posted videos of himself driving his Lamborghini, a Gallardo Superleggera. With his personalized license plate reading BNKRUPT, he drove the car to events organized by Pittsburgh Cars and Coffee, a group of rare- and expensive-car enthusiasts. At a recent gathering in Cranberry, members declined to comment.
He showed off his second Lamborghini — a 2010 Murcielago valued at $495,000, according to investigators — at black-tie events where people recalled his charm and confidence, posing for photos. Graziano appeared in at least four photos in 2011 and 2012 in the Tribune-Review's Fanfare section, which documents society events.
Though he worked as a corporate trust administrator at BNY Mellon, on his blog he styled himself a successful young entrepreneur.
“Entrepreneurship is in my DNA,” he wrote. “I live for innovation and the pursuit of opportunity without regard to resources.”
In reality, authorities said, he was defrauding banks and people of millions.
In 2008, Dollar Bank extended him a loan to buy his Downtown condominium, federal agents said. To do so, Graziano falsified bank statements to show he had $115,320.44 in Philadelphia Federal Credit Union, investigators said. His actual balance was less than $9.
Public records show he purchased the condo at 151 Fort Pitt Blvd. for $211,000.
Graziano began embezzling from BNY Mellon in 2009, authorities said. Over three years, he orchestrated 27 fraudulent wire transfers to siphon $2,441,294.35 from the bank's accounts into his own, according to the indictment.
BNY Mellon officials declined to comment.
LIFESTYLE ‘ESCALATED'
Flush with cash, Graziano lived the life of a high roller, friends said. He bragged about his Rolex watches and expensive cars. Videos of high-speed drives in his Lamborghini remain online.
He dated a series of attractive girlfriends and boasted of mob connections, friends said.
“The cars, the whole lifestyle — it just escalated. Nobody wants to be associated with him anymore,” said one former friend, who did not want to be named because she fears for her safety.
He obtained fraudulent loans, authorities said, conning $226,649.81 from First Niagara Bank and $130,000 from First Commonwealth Bank. In many cases, he used cars he had sold as collateral.
When he sought a $250,000 loan from AmeriServ Financial Bank last year, a loan officer asked to inspect his Lamborghini, according to the indictment. Graziano, who traded the car for a Bentley in 2011, said the vehicle was in storage in New York, investigators said.
Graziano claimed in loan documents to earn $21,000 a month by running a hedge fund business called Profinity. Authorities contend Profinity was a front and that he reported income of just $7,104 on tax returns.
The personal loans paid gambling debts, said investigators and friends. A Rivers Casino employee described Graziano as a “good customer,” meaning he spent a lot of money.
Pennsylvania Gaming Control Board officials said they don't comment on earnings and losses for individual players.
David Airey, a graphic designer in Northern Ireland, said Graziano hired him to produce a logo for Profinity; a testimony from Graziano praising that work remains on Airey's webpage. Airey said he was surprised to hear of Graziano's indictment.
“He paid me on time and was a good client to deal with,” Airey told the Trib in an email.
‘SECRETS, SHORTCUTS'
On his blog, Graziano wrote about when to use cash or credit on large purchases and how to pick up women at nightclubs. Among his tips: Never show your socks.
“You heard me, smelly,” he wrote. “Buy a pair of low profile socks and throw them on under your loafers or dress shoes. It will show just the right amount of skin and draw attention to your beautiful Italian leather shoes.”
American Express Co. sued Graziano in September, claiming the blog name — blackcardstatus — is a trademark infringement.
Black Card is slang for the company's Centurion Card, which American Express described as “the most prestigious and difficult-to-obtain American Express card (that is) available only to a tiny percentage of American Express cardholders (and) has become a symbol of unique status, extreme luxury, and unparalleled financial success.”
Graziano has not responded to the lawsuit.
“I'm going to tell you where I messed up, so you don't make those same mistakes,” Graziano wrote. “I'm going to tell you secrets and shortcuts I've came across that have saved me time, money, and much more. ... Just know that you are getting the real deal. Word for word, picture for picture, tweet for tweet.”
Joseph Graziano Jr. flaunted his wealth.
He flashed cash and frequented VIP sections in casinos, friends said. He rented a swanky Squirrel Hill condo for a year, paying cash upfront, a former landlord said. He bragged on a blog that he paid cash for his first Lamborghini and a Bentley.
“I loved it. It was empowering,” Graziano, 28, of Downtown wrote at blackcardstatus.com. “... I walked out with the Lamborghini, and the title. I owned it. No leinholder (sic), it was a rush!”
It was a lie, according to investigators.
In an indictment, the U.S. Attorney's Office said Graziano embezzled nearly $2.5 million from Bank of New York Mellon Corp. while working there; took out bank loans and offered expensive cars he no longer owned as collateral; and ripped off eBay customers by accepting thousands of dollars for electronics and sending buyers empty boxes.
Graziano pleaded not guilty on Oct. 22 to 14 counts of bank fraud, bank embezzlement and mail fraud. The crimes carry a potential prison sentence of 380 years and an $11 million fine.
Graziano could not be reached. A man who answered his cellphone hung up.
Free on an unsecured $25,000 bond, he remains in Western Pennsylvania, said his attorney, Martin Dietz, who would not comment. Graziano's family declined to comment.
But the indictment, former friends and associates, and what remains of Graziano's social media footprint document the derailment of an extravagant life.
“I've experienced more at my age than most people will in their entire lifetime,” Graziano blogged in July.
REMAKING HIS IMAGE
Graziano, the son of an insurance broker, lived in the small town of Hawley, near Scranton, before enrolling at the University of Pittsburgh. He graduated in 2008 with a bachelor's degree in economics, Pitt spokesman Adam Reger said.
He apparently was an unremarkable student: Reger said department officials “didn't come up with anyone who remembers this student.”
Soon after graduating, however, he landed the BNY Mellon job and began remaking his image.
He posted videos of himself driving his Lamborghini, a Gallardo Superleggera. With his personalized license plate reading BNKRUPT, he drove the car to events organized by Pittsburgh Cars and Coffee, a group of rare- and expensive-car enthusiasts. At a recent gathering in Cranberry, members declined to comment.
He showed off his second Lamborghini — a 2010 Murcielago valued at $495,000, according to investigators — at black-tie events where people recalled his charm and confidence, posing for photos. Graziano appeared in at least four photos in 2011 and 2012 in the Tribune-Review's Fanfare section, which documents society events.
Though he worked as a corporate trust administrator at BNY Mellon, on his blog he styled himself a successful young entrepreneur.
“Entrepreneurship is in my DNA,” he wrote. “I live for innovation and the pursuit of opportunity without regard to resources.”
In reality, authorities said, he was defrauding banks and people of millions.
In 2008, Dollar Bank extended him a loan to buy his Downtown condominium, federal agents said. To do so, Graziano falsified bank statements to show he had $115,320.44 in Philadelphia Federal Credit Union, investigators said. His actual balance was less than $9.
Public records show he purchased the condo at 151 Fort Pitt Blvd. for $211,000.
Graziano began embezzling from BNY Mellon in 2009, authorities said. Over three years, he orchestrated 27 fraudulent wire transfers to siphon $2,441,294.35 from the bank's accounts into his own, according to the indictment.
BNY Mellon officials declined to comment.
LIFESTYLE ‘ESCALATED'
Flush with cash, Graziano lived the life of a high roller, friends said. He bragged about his Rolex watches and expensive cars. Videos of high-speed drives in his Lamborghini remain online.
He dated a series of attractive girlfriends and boasted of mob connections, friends said.
“The cars, the whole lifestyle — it just escalated. Nobody wants to be associated with him anymore,” said one former friend, who did not want to be named because she fears for her safety.
He obtained fraudulent loans, authorities said, conning $226,649.81 from First Niagara Bank and $130,000 from First Commonwealth Bank. In many cases, he used cars he had sold as collateral.
When he sought a $250,000 loan from AmeriServ Financial Bank last year, a loan officer asked to inspect his Lamborghini, according to the indictment. Graziano, who traded the car for a Bentley in 2011, said the vehicle was in storage in New York, investigators said.
Graziano claimed in loan documents to earn $21,000 a month by running a hedge fund business called Profinity. Authorities contend Profinity was a front and that he reported income of just $7,104 on tax returns.
The personal loans paid gambling debts, said investigators and friends. A Rivers Casino employee described Graziano as a “good customer,” meaning he spent a lot of money.
Pennsylvania Gaming Control Board officials said they don't comment on earnings and losses for individual players.
David Airey, a graphic designer in Northern Ireland, said Graziano hired him to produce a logo for Profinity; a testimony from Graziano praising that work remains on Airey's webpage. Airey said he was surprised to hear of Graziano's indictment.
“He paid me on time and was a good client to deal with,” Airey told the Trib in an email.
‘SECRETS, SHORTCUTS'
On his blog, Graziano wrote about when to use cash or credit on large purchases and how to pick up women at nightclubs. Among his tips: Never show your socks.
“You heard me, smelly,” he wrote. “Buy a pair of low profile socks and throw them on under your loafers or dress shoes. It will show just the right amount of skin and draw attention to your beautiful Italian leather shoes.”
American Express Co. sued Graziano in September, claiming the blog name — blackcardstatus — is a trademark infringement.
Black Card is slang for the company's Centurion Card, which American Express described as “the most prestigious and difficult-to-obtain American Express card (that is) available only to a tiny percentage of American Express cardholders (and) has become a symbol of unique status, extreme luxury, and unparalleled financial success.”
Graziano has not responded to the lawsuit.
“I'm going to tell you where I messed up, so you don't make those same mistakes,” Graziano wrote. “I'm going to tell you secrets and shortcuts I've came across that have saved me time, money, and much more. ... Just know that you are getting the real deal. Word for word, picture for picture, tweet for tweet.”
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