Arizona executives sentenced in ND bank fraud case

Two executives from a defunct Arizona mortgage lender received drastically different federal prison sentences Friday for swindling North Dakota-based BNC National Bank out of at least $26 million at a time when financial institutions were reeling from the national mortgage crisis.

Scott Powers and David McMaster pleaded guilty in October to conspiracy to commit bank fraud and wire fraud. Powers was the CEO of American Mortgage Specialists Inc., or AMS, and McMaster was the company's vice president in charge of lending operations.

In separate sentencing hearings in Bismarck, U.S. District Judge Daniel Hovland gave McMaster 15 years and six months in prison, and Powers eight years. Several employees from the bank were at the hearings.

Powers reportedly was given credit for cooperating with authorities. McMaster's lawyer said his client owned up to the charges and deserved better.

"I am hopeful that the BNC people have closure, but I am disappointed in the sentence," McMaster's defense attorney James Belanger told The Associated Press. "David McMaster took responsibility for his actions, agreed to plead guilty, and knew that he would face a term in prison."

The length of McMaster's sentence undermines the concept of responsibility in criminal cases and "underscores the irrationality" of federal sentencing guidelines, Belanger said.

Powers' attorney, Patrick Sampair, was not immediately available for comment.

Authorities say AMS defrauded the bank by providing it with false financial statements and other information about the status of loans the bank had financed. A printout obtained by a BNC employee in April 2010 showed that about $565,000 of loans remained to be sold, rather than the approximately $27 million of loans shown as being held for sale to investors.

Documents show that BNC's holding company received about $20 million from the federal Troubled Asset Relief Program, or TARP, in January 2009. About $18 million of that went to the bank. Investigators say BNC did not make its required TARP dividend payments to the government between February 2010 and December 2011.

At that point, BNC ceased funding the loans, and AMS shut its doors.

"Mr. McMaster and Mr. Powers stole $28 million from BNC banks, putting the jobs of the people who work there at risk," U.S. Attorney Timothy Purdon said. "Further, because of the TARP payments BNC had received, they also put the American taxpayer at risk."

The plea agreements call for Powers and McMaster to pay back more than $28.5 million to the government and more than $28.5 million to the bank.

Two other people were indicted in the case. Lauretta Horton, former director of accounting with AMC, and David Kaufman, an independent auditor, pleaded guilty and were sentenced to probation. Horton was charged with conspiracy to commit bank and wire fraud. Kaufman was charged with obstruction of justice.

BNS is based in Bismarck with offices in several states, including Arizona. Bank CEO Gregory Cleveland did not return a phone message Friday.

Former Montgomery County Credit Union CEO Gets Retrial In Embezzlement Case in Pennsylvania

The former CEO of a Montgomery County credit union is back before a judge for her retrial on charges that she allegedly used credit union funds to pay some of her personal expenses.

Anne Clyburn was convicted in 2010 of stealing more than $32,000 from the United Food and Commercial Workers Local 1776 Federal Credit Union

She served nine months behind bars, but the conviction was overturned last year and she was granted a new trial.

Prosecutor Steven Latzer says he’s withdrawn some of the charges related to Clyburn allegedly giving herself unauthorized raises and using a credit card to pay charges that weren’t approved by the Board.

She’s accused of cutting credit union checks to pay dental bills for her husband.

The reduced charges involve much less money than the previous conviction. The trial, which opened Thursday morning, is being heard by a judge rather than a jury

Former VP of Lending convicted of bank embezzlement in Texas

Shawn Nelson, 39, of Houston and a former vice-president at Members Choice Credit Union, has entered a plea of guilty to embezzling approximately $340,000 from the bank, United States Attorney Kenneth Magidson announced today.

Court records reflect that Nelson was a vice-president of lending at Members Choice Credit Union in Houston. From 2001 through 2009, Nelson opened signature loan accounts in his friends’ and family members’ names without their authorization and then withdrew money from accounts without their authorization. By the time the fraud was discovered, Nelson had stolen more than $340,000 from the credit union.

U.S. District Judge Keith P. Ellison, has set sentencing for Sept. 26, 2013, at which time Nelson faces up to 30 years in federal prison and a possible $1 million fine. Additionally, as part of his plea agreement, Nelson has agreed to forfeit approximately $340,000.

The investigation was conducted by the U.S. Secret Service. Assistant United States Attorneys Sharad S. Khandelwal and Kristine Rollinson are prosecuting.

Bristol bank teller pleads guilty to fraud in Connecticutt

A bank teller accused of stealing from the CD accounts of mostly elderly customers has pleaded guilty to bank fraud.

Federal prosecutors say 35-year-old Michelle Laudato of Farmington pleaded guilty Tuesday in U.S. district court in Hartford.

Prosecutors say Laudato used her position at a Webster Bank branch in Bristol to steal more than $178,000 from the accounts of at least 18 customers between July 2009 and June 2010. Most of the victims were in their 80s and 90s.

Laudato was accused of withdrawing money from CD accounts to replace funds she had taken from others and taking the money in increments of $10,000 or less to avoid transaction reporting requirements. She faces a maximum sentence of 30 years in prison.

Ariz. woman pleads guilty in embezzlement case at credit union

An Arizona woman has pleaded guilty to embezzling more than $780,000 from the Pinal County Federal Credit Union in Casa Grande.

The Casa Grande Dispatch reports that Jennelle Rena Curtis pleaded guilty to two counts of embezzling from a credit union Thursday as part of a plea agreement.

Court documents show that Curtis embezzled the money in 2009. She worked at the credit union from 2002 until 2011.

As part of a plea agreement, Curtis admitted issuing around 100 bank checks totaling $780,697 for personal use.

Prosecutors will recommend a sentence of between 24 and 30 months for Curtis as part of a plea deal.

Sentencing is slated in September.

Former Nebraska banker gets 3 1/2 years in prison

A former Sidney banker has been sentenced to three-and-a-half years in prison for embezzling over $1.3 million.  Matt Monheiser was handed the 42 month sentence in federal court Monday and he will also serve five years of supervised release after he is out of prison.
     The 38-year-old Monheiser was convicted of taking almost $1,365,000 from what was the former First National Bank in Sidney where he was vice president and branch manager.  The thefts occurred between March 2003 and August 2012 where he used funds from customers’ loan accounts to buy cashier’s checks in customers’ names.  He also created loans in customers’ names and stole $82,000 cash directly from the bank vault.
     After pleading guilty last spring, Monheiser told KSID he was addicted to gambling, which fed his embezzlement.  He was treated for 28 days at a wellness center in Virginia shortly after the thefts were discovered.
     According to the U.S. Attorney’s Office $500,000 restitution has already been paid.  Monheiser told us in April that a cash-collateral account has been set up to repay the rest but would not say who funded the accoun

Former bank employee admits to embezzling nearly $100K in Rhode Island

 A former bank employee pleaded guilty in federal court on embezzlement charges after he stole nearly $100,000 in treasury funds.

Elvy Gomez, 39, of Providence, used to work at Bank of America. He admitted to the court Friday that he used his position at the bank to deposit stolen treasury checks into a dormant checking account, from which he later withdrew the funds.

Prosecutors said Gomez managed to deposit 14 stolen treasury checks into that account in just four months, embezzling a total of $95,559.

He pleaded guilty to one count each of theft of government property, forging an endorsement on treasury checks and money laundering.

Gomez faces up to 10 years in federal prison, three years supervised release and a fine of up to $250,000 on each charge.