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Federal Jury convicts former vault teller in $700,000 embezzlement

USDOJ coinA federal jury on Thursday convicted a former teller at a bank in western Kansas on charges of embezzling approximately $700,000.

U.S. Attorney Tom Beall said Denise Christy, 48, of Burlington, Kan., was convicted on one count of embezzlement, six counts of making false bank entries, six counts of filing false tax returns and six counts of money laundering.

During trial, the prosecutor presented evidence the crimes were committed while Christy worked as a retail financial services representative and backup vault teller for the Burlington branch of Central National Bank. One of Christy’s duties was to sell cash in the bank’s vault to the Federal Reserve Bank. In May 2014 auditors determined that more than $700,000 was missing from the vault. Christy falsely claimed the money was shipped to the Federal Reserve Bank by a security company.

An investigation showed Christy falsified bank records to cover up the embezzlement and failed to report the embezzled funds as part of her income. In addition, she unlawfully conducted financial transactions in order to spend more than $77,000 in embezzled funds to pay off loans that she and her husband maintained at Farmers State Bank in Aliceville, Kan.

Sentencing is set for April 17. The crimes carry the following penalties:

Embezzlement: up to 30 years in federal prison and a fine up to $1 million.
Making false bank entries (each): up to 30 years in prison and a fine up to $1 million.
False tax returns (each): a maximum penalty of three years and a fine up to $100,000.
Money laundering (each): a maximum penalty of 20 years and a fine up to $50,000.

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