Bank President Sentenced in Multi-Million Check Scheme
On September 21, 2012, the US Attorney’s Office in the District of Minnesota reported that the former president of the Pinehurst Bank in St. Paul was sentenced for contribution in a multi-million-dollar check-kiting scheme.
John Anthony Markert of Mendota Heights was sentenced to 42 months in prison for five counts of misapplication of bank funds. Markert was sentenced along with the co-defendant, George Leslie Wintz, Jr. Wintz was also sentenced to 42 months in prison for two counts of bank fraud and one count of theft from an employee benefit plan.
During the trial, evidence proved that Markert helped in Wintz’s checking-kiting scheme from March 6, 2009 to January 29, 2010. According to the FBI, Markert issued a series of fraudulent loans to conceal the scheme that totaled $1.9 million.
According to the FBI, “Check-kiting occurs when someone intentionally writes a check for a value greater that the account balance and then write another check from a different account with non-sufficient funds to cover the overdrawn account. Through the scheme, account balances are falsely inflated, allowing the kiter to use non-existent funds to cover payments of debts and purchases.”
An independent audit showed Markert’s cooperation in the scheme in January of 2010. Because of his actions, the bank became undercapitalized because of declaring the loans as losses and was forced to close in May of 2010.
Wintz was also found guilty of embezzling over $160,000 from a 401(k) account Triangle Warehouse Inc., which he owned. Wintz apparently used the funds to pay company bills, straw loans, and more.
The case was investigated by the FBI, the Federal Deposit Insurance Corporation-Office of Inspector General, and the U.S. Department of Labor-Employee Benefits Security Administration. The case was prosecuted by Assistant U.S. Attorneys William J. Otteson and David M. Genrich.
Source: Federal Bureau of Investigation
Comments
Must Read
Mail Fraud Quick OverviewMail fraud refers to any deceitful crime that includes the use of the postal system.
Accountant Fraud At A GlanceAccountant fraud (or corporate accounting scandals) often occurs as a result of an accountant not disclosing factual statements to their clients (individuals or businesses) about the state of their finances.
All You Need To Know About Mail Fraud ChargesMail fraud charges are used most frequently in federal white collar crime cases to either make an initial charge or add a charge to a list of existing ones.
All You Need To Know About Reporting BlindnessOne of the most common disability fraud types Disability fraud falling into the category of "reporting blindness" can also include criminals taking advantage of acts intended to help the legally blind return to work.
All You Need to Know About Supreme Court CasesThere are two cases that involve the proper criminal procedure involving the prosecution of wire fraud.
All You Need to Know About The History Identity TheftIdentity theft, though it has taken on new forms and has become significantly more common, is not a new crime.
Bait and Switch DefinitionIt may not necessarily be all that obvious all the time, but the bait and switch tactic used by both the retail and political world should be of no surprise to people living in nations which are fueled by consumerism and politics.
Bankruptcy Fraud At A GlanceBankruptcy fraud is any kind of fraud involving filing for bankruptcy in an attempt to gain some kind of profit from the overall scheme.