 |
 |
The United States Department of Justice
Welcome to the District of
Kansas
FOR IMMEDIATE RELEASE
News releases are available at www.usdoj.gov/usao/ks/press.html
Contact: Jim Cross
Phone: (316) 269-6481
FAX: 316-269-6420
JAN. 31, 2007
FORMER CREDIT UNION VICE PRESIDENT SENTENCED IN BANK FRAUD
TOPEKA, Kan. – A former vice president at K-State Federal Credit Union in Manhattan was sentenced Tuesday to a year in federal prison for bank fraud.
Stephan Johannes, 48, Manhattan, Kan., who pleaded guilty in August to one count of bank fraud, appeared for sentencing Tuesday before U.S. District Judge Julie A. Robinson. She ordered him to pay restitution of $154,485.
“As a vice president and loan manager, Mr. Johannes was in a unique position to manipulate the loan balances of members’ accounts and to divert bank funds into his personal account,” said U.S. Attorney Eric Melgren.
In his plea, Johannes admitted that he committed crimes while he was employed by K-State Federal Credit Union from March 2000 to Oct. 14, 2004. The crime was discovered when a loan customer called the bank because of an error on her loan statement and Johannes was not there to take the call. The customer told bank personnel that she had gotten behind in her loan payments and Johannes was to have extended the due date to help her remain current. But when her loan statement arrived, she said, her balance had been increased by $1,000 although she had not received any additional money. An investigation by the bank found that checks totaling $1,000 had been deposited into Johannes’ personal accounts at Kansas State Bank and Capital Federal Savings Bank.
An internal review of Johannes’ loan accounts found numerous instances of customer loans being extended. Customer loan files reflected that when Johannes changed the due date of a loan, he would also use the bank’s computer system to advance funds on the customer’s loan. This would cause a disbursement which, in the regular course of business, should have been placed toward the delinquent loan. However, Johannes would issue a corporate check made out to his personal bank accounts at Kansas State Bank and Capital Federal Savings Bank.
Melgren commended the Riley County Police Department and the Federal Bureau of Investigation for their work on the case, as well as Assistant U.S. Attorney Greg Hough, who prosecuted the case.