Local Long-Term Bank Embezzlement Scheme: Too Easy?

[XLFD]

According to the Muskegon Chronicle:  http://www.mlive.com/news/muskegon/index.ssf/2012/12/woman_pleads_g...

Stacy Lynn Ahlgren, a former longtime employee of both Ludington branches of Northwestern Bank, has pleaded guilty to embezzling nearly $900,000 from the bank over five years.

In her first appearance December 20 in U.S. District Court for the Western District of Michigan in Grand Rapids, Stacy Lynn Ahlgren pleaded guilty as charged to embezzlement from an insured bank, a federal crime.

U.S. District Judge Robert J. Jonker continued her $50,000 bond, which she has posted, with the additional condition that she get no new credit extensions of $500 or more without the approval of a probation officer.

Jonker scheduled sentencing for 2 p.m. April 8.

The plea is pursuant to an earlier plea agreement with the U.S. Attorney’s office in Grand Rapids. In that agreement, Ahlgren, also known as Stacy Lynn Kimble, agreed to pay full restitution and continue cooperating with prosecutors.

The crime is punishable by up to 30 years in federal prison, but in the plea agreement the U.S. Attorney’s office agreed not to object to a defense request for a lighter sentence.

In the plea agreement, Ahlgren admitted embezzling $873,589.76 from the bank from 2007 through 2011, with the amounts rising each year from $140,866.45 in 2007 to $188,591.52 in 2011.

According to the plea agreement, Ahlgren worked at two branch locations of Northwestern Bank in Ludington. By 2006 she was the senior customer service representative, giving her sole responsibility over the bank vault in the branch at 101 E. Court St.

According to the plea agreement, at least weekly she stole cash, cashier’s checks and money orders from her teller drawer in an area she knew was not caught on security cameras. She concealed the scheme by preparing false bank-vault audit sheets and by periodically falsifying the vault balance in the bank’s computer system.

According to the COLDNews on Dec. 5:

Doug Zernow, director of marketing and communications for Northwestern Bank, said the bank’s customers have no need to worry that their accounts were affected.

“The money was essentially taken from the bank, not any customer accounts,” Zernow said. “There is no impact to customers.”

Thanks, Doug, I guess the bank losing out on nearly a million (or more, depending on the honesty of a six year embezzler operating with little oversight) does not mean anything in the long run.  A private bank should have a variety of safeguards put into practice that should catch the loss of such a large amount of cash over such a large amount of time.  Why does it take six years, between 2006 and 2011 inclusive, for the bank to find the skimming of over $140,000 each year?

Northwestern, and other banks, need to develop further safeguards to protect their own interests, because these losses do affect the overall health of the banking community, and everyone else.  Let us not forget the American taxpayer helped bail out some of the big players in the banking community not very long ago for not looking very closely at what they do with their money.  It can sure lead to a loss of confidence in the American banking system.

It also makes us consider for a bit how comfortable we should be with how the bookkeeping is done with other organizations that handle a bunch of money that rely on the people's trust.  Government treasuries at all levels frequently have similar scandals primarily due to the fact that the accountability is found lacking, as seen in very recent news articles right here in Michigan:   

A $90,000 shortfall at the township level in Calhoun County and $58,000 at the township level in Allegan County, both being processed this fall being perpetrated by those township treasurers.

An employee in Portage (Kalamazoo) Public Schools' human resources department using a district card to pay for $1,074 in personal expenses.

An Atlanta man was charged  with defrauding and embezzling more than $3 million from the two city of Detroit pension funds and a city of Pontiac pension fund.

And even pastors are running off with large amounts of money they have no right to.  Isn't that a commandment?  A West Michigan pastor embezzled more than $300,000.

And if we decide to go back just a little more:

Tommie McCarthy, 38, of Alpha, Michigan embezzled $174,000 from the Village of Alpha, for whom he had been employed as town clerk.

John A. Orecchio, 44, embezzled more than $24 million from several union pension funds in Michigan.

Margaret Frances Jorasz, 51, of Wilson, Michigan, embezzled more than $308,000 from Harris Township, Michigan, where she had served as town treasurer.

And the lists go on.  But as the Ahlgren case shows, the stealing of funds over a long period of time can easily be masterminded by those who have little oversight over what they are doing, and protocols that can be easily sidestepped.  When an organization makes very little effort to review its purchases and revenues, to go through proper competitive bidding practices, to repeatedly fight against transparency, to allow its members to violate ethical procedures, or to follow proper protocols for routine matters, one can expect some fraud and embezzlement to take hold over time. 

It sounds like a certain group I have been dealing with lately. 

[XLFD]

Especially when you consider the regular routine of Ms. Ahlgren that accounted for about an equal amount per year for nearly six years to disappear from the bank rolls.  In a long-term situation like this there should be more than just one person caught with their hand in the cookie jar or in the know about it.  Either she was very thorough and precise, or maybe there is honor among thieves.

[Willy]

Doug Zernow, director of marketing and communications for Northwestern Bank, said the bank’s customers have no need to worry that their accounts were affected. “The money was essentially taken from the bank, not any customer accounts,” Zernow said. “There is no impact to customers.”
How can he make that statement? The only way the statement could be made with a straight face is if the bank has done an indepth audit which takes a lot of time. And how is it possible that customers accounts were not involved? If it wasn't the customers money then whose was it? Doesn't make any sense.
She's darn lucky to be out on a measly $50,000 bond and how in the World is she going to pay that money back? If I were a customer of that bank I would demand more answers as to how she was able to steal such a large amount of money over such a long period of time without being noticed. On average she stole $2800 every week for 6 years not including vacations. How did she do that for 6 years?

[XLFD]

I think Zernow is putting a nice spin on it by noting that she didn't actually draw money from people's/business' accounts, just from (effectively) the banks vault, like you might have in a regular robbery.  So if you deposited $1000 cash into your account, and she scarfed it up later, you still got the crdit in the records for depositing the money even when it didn't ever get to the vault. 

As for your last notion, Willy, that is an awfully good question, but it sounds as if the bank and the federal prosecutors are going easy on her so far, hoping to get back some money rather than punish her severely, or get more concessions or an idea of where the money may be at. 

[AQUAMAN]

I just talked to someone in the know on this tonight, and it's likely that since this is virtually a victimless crime, and her stepfather can probably afford to cover most or all the loss/restitution, that the time will be decreased with more higher fines and probation in the sentence, just an educated guess right now.

[XLFD]

Just considering motivations, I presume the bank would rather have about a million dollars back rather than have Stacy spend a lot of time in the hoosegow for the crime and be out over $900,000. 

If she was stealing on average $3000 as part of a weekly routine, maybe she should be nailed with about 300 charges of felonious larceny.  But the truth is, she will face a lot less punishment than would some poor person who makes a bomb threat to that bank, or who gives a teller a note asking for the contents of their drawer and makes away with a couple hundred dollars. 

[Willy]

I think X makes a valid point. This was not a single act of robbing the bank, it was numerous acts of robbery. Letting her off easy is not the way to go. If my money were in that bank I would cancel my accounts immediately.

[AQUAMAN]

This is more or less called a civil white collar crime, as no gun nor serious criminal type behavior was exhibited. I know, it's a crime to steal, and that in itself lends to criminal behavior in the eyes of the law. Since she has no previous record, and when and if restitution comes about, I think it will weigh in her favor. That's NOT saying I condone nor approve such conduct at all. I just would like to hear all the evidence and know all the facts before agreeing with any punishments. It was told to me that most all the money went to the Little River Band in gambling, and that she doesn't even have a car to get around since this came down on her. I do have accounts at NW Bank, and feel secure with the other employees I have met.