Former United Bank of Michigan senior vice president sentenced for embezzling $870K
(CBS DETROIT) - The former senior vice president of United Bank of Michigan is sentenced Wednesday to nearly three and a half years in prison for embezzling $870,000 and tax evasion, the U.S. Attorney's Office announced.
John Figg, 56, of Grand Rapids, is ordered to pay $870,000 in restitution to the United Bank of Michigan and $146,300 to the IRS. He is also sentenced to three years of supervised release following his time in prison.
He pleaded guilty in March.
"We trust our financial institutions to be wise stewards of our savings," said U.S. Mark Attorney Totten in a statement. "Figg pilfered funds entrusted to him as a bank official and broke both the law and the public's trust. He must now deal with the consequences of his embezzlement and tax evasion."
Officials say between 2014 and 2021, Figg, who was a senior bank vice president at United Bank, used his credentials to obtain funds via customer accounts held by depositors, phony loans in customers' names, and funneled fees collected by the bank in connection with loan closing costs.
Between 2016 and 2020, he generated taxable income from the embezzlement and concealed it from his tax preparer.
"The IRS, along with our law enforcement partners, will vigorously pursue those who use their position of trust to victimize clients and violate the law," said Charles Miller, Special Agent in Charge of IRS Criminal Investigation, Detroit Field Office. "Today's sentence demonstrates the government's determination to restore and ensure that trust."