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Banks (Finance)

Former Bank Executive Sentenced to 63 Months for $2 Million Check Kiting Scheme

Strategic Insights

— 1 min read

Andrew P. Blassie, the former Executive Vice President of the Bank of O'Fallon, has been sentenced to 63 months in prison for his role in a $2 million check kiting scheme. Blassie admitted to using his position to defraud the bank and its customers, and was also ordered to pay $2,461,887.67 in restitution.

Key Takeaways:

  • Blassie pleaded guilty to one count of bank fraud and one count of interstate transportation of security or funds obtained by fraud.
  • The scheme involved Blassie inflating the balance of his personal checking account by depositing checks with non-sufficient funds from other banks and credit unions.
  • He used the funds to pay for personal expenses, totaling nearly $2.7 million.
  • Blassie also persuaded a couple to invest $489,000 of their retirement savings in promissory notes, which he used to pay some of the interest with money obtained from the check kiting scheme.
  • The U.S. Secret Service, FDIC OIG, and other law enforcement agencies were involved in the investigation, and officials with the Bank of O'Fallon cooperated with the investigation.
  • Assistant U.S. Attorney Zoe Gross prosecuted the case.
  • Blassie was sentenced to 63 months in prison and ordered to pay $2,461,887.67 in restitution.
  • The investigation and prosecution of Blassie demonstrate the commitment of law enforcement agencies to holding bank insiders accountable for their role in fraud schemes that threaten the safety and soundness of the financial system.

Statistics:

  • $2 million: The amount of funds defrauded from the Bank of O'Fallon through the check kiting scheme.
  • 63 months: The length of Blassie's prison sentence.
  • $2,460,887.67: The amount of restitution Blassie was ordered to pay.
  • $489,000: The amount of retirement savings invested by the couple in promissory notes.
  • 128 shares: The number of shares of the holding company that owned the Bank of O'Fallon pledged by Blassie as security for the promissory notes.

Sources:

  • United States Attorney's Office for the Southern District of Illinois
  • U.S. Secret Service
  • Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG)
  • Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau
  • Federal Housing Finance Agency Office of Inspector General's Central Region

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