Bank VP jailed for over nine years for fraud and money laundering – 28 November 2012

11 Dec 2012

Rhonda Devries – formerly vice president of operations at First Security Bank (FSB) in Malta, Montana – has been sentenced to 110 months in prison for bank fraud, credit card fraud and money laundering.

She was also ordered to pay US$3,811,221.52 [about £2.4 million] in restitution. Devries had large personal credit card debts, which she transferred from card to card, and in January 2001 she opened a fraudulent credit card account at FSB for which she could, by virtue of her position, approve and establish a high credit limit. In September 2001, she opened a second fraudulent credit card account, then a third in May 2009 and a fourth in June 2011.

In April 2012 the credit card servicing company contacted FSB to report suspicious activity on three credit accounts; when confronted, Devries admitted responsibility. She said that she used the fictitious credit cards to obtain cash advances which she would then use to purchase money orders made payable to herself, her creditors and other third parties. She also confirmed that she had taken meticulous steps in the monitoring and handling of the accounts to ensure that her frauds were not discovered. In charges, interest and fees, Devries defrauded the credit card company of about $3,672,627.

US Attorney Michael Cotter spoke of the impact of Devries’ actions: “Rhonda Devries’ betrayal of her employer is a particularly devastating and consequential crime. Small banks in Montana have always been the backbone of our commerce, and they struggle to maintain a place in their communities without the support of a national brand. The future of First Security Bank is uncertain – Devries’ crimes have caused a grievous financial wound. When a community bank is forced out of business because of external economic forces or internal corruption, it is a sad day for our rural way of life.”