Fed release more information in bank embezzlement case
The U.S. Attorney’s office in Cape Girardeau has released additional information concerning the charges against a former Dunklin County banker who has pled guilty to embezzlement.
Martin “Marty” Herrington, 44, of Kennett, entered a guilty plea before U.S. District Judge Henry E. Autrey, Sept. 2 in federal court in Cape Girardeau, to seven felony counts of embezzlement.
Judge Autrey has set a December 3 sentencing date for Herrington.
He was released on a $50,000 bond pending sentencing.
U.S. Attorney Raymond W. Gruender had said that between September 24, 2001, and September 6, 2002, Herrington, who was a loan officer for First
National Bank of Malden, prepared 23 fictitious loans totaling nearly $800,000, and put the proceeds of the loans into his personal account.
The U.S. Attorney’s office in Cape Girardeau has released the following description of those loans:
December 21, 2001–Loan No. 141260 for $40,117 payable to Larry Young. On the same day, $20,000 of the proceeds from this loan was deposited into Herrington’s personal account at Unico Bank in Kennett.
On December 26, 2001, another $20,000 from this loan was deposited into Herrington’s account.
February 8, 2002–Loan No. 142560 for $22,067, again payable to Larry Young. On the same day, $22,000 of the proceeds from this loan was deposited into Herrington’s account at Unico.
March 22, 2002–Loan No. 155900 in the amount of $36,568, once again payable to Larry Young. On the same day, the defendant deposited $36, 500 of the proceeds of this loan into his personal account at Unico.
August 15, 2002–Loan No. 216435 in the principal amount of $32,067–the fourth fictitious loan payable to Larry Young. On the same day $32,000 was deposited into Herrington’s personal account at Unico.
Herrington’s mode of operation involved a second innocent victim in his embezzlement scheme beginning on January 25, 2002, with Loan No. 142165 in the principal amount of $90,068, payable to Thomas K. Payne. That same day, $25,000 was deposited into Herrington’s account with an additional $20,000 deposited into his account on February 15, 2002, and yet another $20,000 deposited on February 22, 2002.
On or about March 13, 2002, the defendant prepared a fictitious loan, Loan No. 143620, in the principal amount of $28,567, payable to Thomas K. Payne. On March 13, he then deposited $28,500 of the proceeds of this loan into his personal account at Unico Bank.
Payne was named as the recipient of yet another fictitious loan, No.157890, prepared by Herrington on or about May 14, 2002 in the amount of $44,567. That same day, Herrington deposited $44,500 of the proceeds into his personal account.
On or about July 17, 2002, August 7, 2002, and September 6, 2002, fictitious loans numbered 215405, 216110 and 217115 in the amounts of $65,068, $62,567 and $30,067, respectively, were made payable to L & H Farms. The defendent deposited $65,000 to his personal account on July 17; $62,500 on August 7; and $30,000 on September 9.
S & S Farms was the fourth victim of Herrington’s scheme. Loan No.158745 in the amount of $45,067 was prepared by Herrington on or about June 10, 2002, with $45,000 deposited to his account the same day; Loan No. 159245 in the amount of $55,067 was prepared on or about June 21, 2002, with $55,000 deposited in his account the same day; and Loan No. 21580 in the amount of $42,067 was prepared on or about July 12, 2002, with $42,000 deposited to his account the same day.
On or about December 4, 2001, Royce Graves’ name was added to Herrington’s list of fictitious loans with Loan No. 141590 in the amount of $60,092. On January 4, 2002, Herrington deposited $20,000 of the proceeds of this loan into his personal account, followed by another $20,000 deposit on January 14, 2002, and a third $20,000 deposit on March 7, 2002.
Other fictitious loans Herrington made payable to Royce Graves included Loan No. 158465 for $45,067 on May 30, 2002, with a $45,000 deposit into his personal account the same day; Loan No. 138905 for $9,067 on September 24, 2001, with a $9,000 deposit into his personal account the same day; and Loan No. 140650 for $10,067 on November 29, 2001, with a $10,000 deposit the same day.
Two fictitious loans were made payable to Marcus Graves: Loan No. 140860 prepared on or about December 7, 2001, in the amount of $3,067 with Herrington’s deposit of $3,000 into his own account on the same day; and Loan No. 156205 prepared on or about April 3, 2002, in the amount of $26,067, with a $26,000 deposit made the same day.
Two fictitious loans also were made payable to Ralph and Miles Horner: Loan No. 216870 prepared on or about August 28, 2002, in the amount of $22,217 with $22,000 of the proceeds deposited in Herrington’s account the same day; and Loan No. 143000 in the amount of $35,075 with $35,000 deposited on the same day.
According to the U.S. Attorney’s office, the monies obtained by the defendant through the fictitious loans were used for his own personal benefit. As a result of the defendant’s conduct, the First National Bank of Malden suffered a loss of approximately $800,000.
First National Bank President Gordon Waller said all bank employees are bonded and the bank has filed proof of loss to the bond insurance company to reclaim the monies.
In the fact sheet provided by the U.S. Attorney’s office in Cape Girardeau, the maximum possible penalty provided by law for the crimes of bank theft to which Herrington pled guilty is imprisonment of not more than 30 years, a fine of not more than $1,000,000 or both on each of the seven counts.
The Court also may impose a period of supervised release of not more than five years.
Gruender praised the Federal Bureau of Investigation for its work on behalf ot the court. Assistant U.S. Attorney Larry H. Ferrell handled the prosecution for the government.
