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30 Months for Minnesota Bank President/embezzler/tax cheat
May 14, 2009
A former bank president in Le Roy, Minnesota, just across the border from Iowa, is going away for 30 months:
The former president and majority owner of First State Bank Minnesota also has to repay over $600,000. From StarTribune.com:
Gerald Alan Payne, 54, pleaded guilty in October to one count of bank fraud and one count of tax evasion. Payne admitted to obtaining money from customer bank accounts, charging personal expenditures on the bank's credit cards and cashing checks written to the bank and others while keeping the cash for himself. Payne also admitted he defrauded individuals for whom he served as a trustee.
If you're interested in a nice bank, this may be your chance:
Payne will sell his stake in First State Bank Minnesota to pay restitution and the taxes he owes. The estimated value of Payne's bank shares is $1.8 million, according to Robert Sicoli, Payne's attorney. He owes the IRS $474,000.
So -- why on earth did he loot his own bank? Especially considering that bank insider theft is a crime that is close to 100% certain to be detected.
Link: Prior Tax Update coverage.
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