“Hardworking residents are entitled to know that once they entrust their cash to a financial institution, it is going to stay there secure and safe,” mentioned U.S. Legal professional Totten. “This prosecution serves as a reminder to financial institution officers that we’ll not tolerate any violation of the belief we put in our banks.”
Based on court docket paperwork, Figg used his entry to financial institution data to acquire funds in a wide range of methods. First, he recognized buyer accounts held by depositors that didn’t scrutinize their accounts and used his entry to them to take away funds for his personal use. Second, he obtained phony loans in buyer names and used the mortgage proceeds for his personal use. Third, he funneled charges usually collected by the financial institution in reference to mortgage closing prices to his personal use. This resulted in losses of roughly $870,000.
Figg generated taxable revenue from this exercise between 2016 and 2020. Nonetheless, he hid this revenue from his tax preparer when that individual ready his tax returns. In consequence, every year Figg underreported his taxable revenue realizing that it was topic to taxation and with the intent to keep away from cost of these taxes.
“Mr. Figg betrayed the belief positioned in him by his employer and the general public, who’ve each proper to anticipate financial institution staff to be trustworthy and legislation abiding,” mentioned James A. Tarasca, Particular Agent in Cost of the FBI in Michigan. “This kind of unlawful conduct can undermine the monetary well being of banks and credit score unions. In consequence, the FBI and IRS will proceed our work to carry corrupt insiders absolutely accountable for his or her crimes.”
“John Figg abused a place of belief as an officer at a federally insured financial institution when he stole cash from unsuspecting victims. He then hid these funds and used them for his personal private acquire,” mentioned Charles Miller, Performing Particular Agent in Cost Detroit Discipline Workplace, Inner Income Service – Prison Investigation. “The IRS is dedicated to working with the U.S. Legal professional’s Workplace and our legislation enforcement companions to aggressively examine people who have interaction in monetary fraud and tax evasion and make them accountable for his or her crimes.”
Figg pleaded responsible to 2 federal crimes right this moment. The primary is embezzlement by a financial institution worker in violation of Title 18, United States Code, Part 656. This carries a most penalty of 30 years in jail. The second crime is tax evasion in violation of Title 26, United States Code, Part 7201, which carries a most jail time period of 5 years in jail. Sentencing will happen at a date to be decided by U.S. District Decide Paul L. Maloney.
This case was investigated by the Federal Bureau of Investigation and the Inner Income Service. Prosecution of the case is assigned to Assistant United States Legal professional Timothy VerHey.