March 10, 2017

Fraud Friday — Bank Manager Gets 3 Years for $1 Million Fraud

By Bob Coleman
Editor, Fraud Friday

jailbars“The defendant engaged in a pattern of illegal, unauthorized transactions which violated the bank customers’ confidence and trust. Today’s sentencing sends a message that the FBI will actively investigate and pursue prosecution of persons in a position of trust and hold them accountable for their actions,” says ”Renae McDermott, FBI Special Agent in Charge, Knoxville Division.

From 2012 through his termination in February 2016, Kenneth Miller embezzled $967,573 from First Tennessee Bank and lost or spent most of this through online gambling and making payments on various personal consumer debts.

He used his position as a bank manager to identify clients who he knew did not review their monthly statements. He defrauded his clients by telling them he would engage in financial transactions for their benefit.

He also embezzled from inactive accounts.

Miller did not claim any of the embezzled funds as income on his tax returns for 2012, 2013, 2014, and 2015, evading paying taxes in the amount of $161,018.

The 37-year old was sentenced to 36 months in federal prison and five years probation.

He was also ordered to pay restitution in the amounts of $844,254 to First Tennessee Bank, $161,018 to the IRS and $81,014 to two additional victims of his crimes, for a total of $1,086,286/

In October 2016 he pleaded guilty to one count of theft by a bank officer and four counts of attempting to evade taxes.